Naira Appreciates Further to N1,484/$1 at NAFEM

By Adedapo Adesanya

The Naira further appreciated against the Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, September 16 by N12.61 or 0.84 per cent to settle at N1,484.62/$1 compared with the previous day’s N1,497.23/$1.

Similarly, the Nigerian currency improved its value against the Pound Sterling in the official market yesterday by N11.16 to trade at N2,026.89/£1 versus the preceding day’s N2,038.05/£1, and gained N6.92 against the Euro to close at N1,754.55/€1 compared with Monday’s value of N1,761.47/€1.

As for the black market, the Naira gained N5 against the greenback during the trading session to sell for N1,505/$1 versus the preceding day’s rate of N1,510/$1.

Analysts at Commercio Partners attributed the rally to a combination of stronger demand for the Naira, reduced speculative trading, and improved foreign reserves.

“Nigeria’s external reserves stood at $41.66 billion on September 11, 2025 and have consistently grown in recent weeks, reflecting a healthier external position for the country. With reserves strengthening, speculative activity subsiding, and oil earnings supporting inflows, many market watchers believe the naira’s current rally has a stronger foundation compared to previous cycles of volatility,” the company said.

Reforms instituted by the Central Bank of Nigeria (CBN) to entrench transparency, accountability and improve Dollar access in the FX market are also expected to prop up the local currency.

Another ease in Nigeria’s inflation to 20.12 per cent in August 2025 makes a case for a possible cut or at least another pause by the Monetary Policy Committee (MPC) of the apex bank.

Despite these, market analysts noted that sustaining the momentum will depend on the government’s ability to maintain macroeconomic discipline, boost crude oil production, and diversify export earnings.

Meanwhile, the cryptocurrency market put up a positive performance as traders anticipated US Federal Reserve meeting on Wednesday will see the US central bank to trim its benchmark fed funds rate by 25 basis points to 4 per cent-4.25 per cent.

According to the Fed funds futures, traders expect rates to drop to 3 per cent from the present 4.25 per cent within the next 12 months.

Binance Coin (BNB) grew by 3.6 per cent to $954.84, Cardano (ADA) jumped by 1.7 per cent to $0.8716, Litecoin (LTC) appreciated by 1.4 per cent to $114.46, Ripple (XRP) expanded by 1.3 per cent to $3.01, Bitcoin (BTC) gained 0.9 per cent to sell at $116,350.43, Dogecoin (DOGE) increased by 0.9 per cent to $0.2662, and Solana (SOL) soared by 0.3 per cent to $234.64.

However, the value of Ethereum (ETH) went down by 0.6 per cent to settle at $4,487.42, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.