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Nigeria’s currency, the naira, appreciated to N1,362/$ on Tuesday, extending its recent gains against the United States dollar.

Data from the Central Bank of Nigeria (CBN) showed the currency strengthened from N1,367.5/$ recorded on Monday, reflecting continued stability in the foreign exchange market.

The improvement comes amid shifting global currency trends, as the U.S. dollar weakened against major currencies following easing geopolitical tensions.

CBN data indicates that the naira continued its upward trend, recording gains both on a day-to-day and week-on-week basis. The appreciation reflects improved demand-supply dynamics in the official market.

The data suggests that while the naira is gaining strength, underlying pressures remain due to declining foreign reserves.

Global currency markets showed mixed movements, with the U.S. dollar weakening amid signs of easing geopolitical tensions, particularly involving the Middle East.

The dollar’s retreat followed comments from U.S. officials indicating progress toward a potential agreement with Iran, which also contributed to a drop in oil prices.

U.S. crude oil prices fell by more than $2, with West Texas Intermediate trading near $100 per barrel, easing some pressure on global markets.

The naira’s continued appreciation offers some short-term relief, though broader macroeconomic factors remain critical to sustaining the gains.

Cardoso said ongoing monetary and foreign-exchange reforms are aimed at strengthening market confidence and improving liquidity.

Also, the CBN maintains an optimistic outlook for the country’s external reserves.

The CBN raised N1.92 trillion at its April OMO auction, with stop rates reaching 21.90%, reflecting continued monetary tightening and strong investor demand.