Blog Details

The Naira appreciated to N1,365/$ on Thursday, gaining against the U.S. dollar amid a broader global decline in the greenback.

Data on the Central Bank of Nigeria’s (CBN) website shows the local currency strengthened from N1,369/$ recorded on Wednesday, reflecting improved sentiment in global currency markets.

The development comes as the dollar heads for its largest weekly drop since January, driven by optimism that a ceasefire in the Gulf will hold and oil shipments will resume.

Further market direction is expected to depend on the outcome of ongoing diplomatic talks between the United States and Iran in Islamabad.

The naira’s appreciation aligns with a broader weakening of the U.S. dollar across global markets.

The weakening dollar reflects easing geopolitical tensions and expectations of improved oil supply flows through the Strait of Hormuz.

The dollar had strengthened significantly in March as geopolitical tensions in the Middle East triggered a flight to safety among investors.

Despite the ceasefire, uncertainty remains, as shipping activity through the Strait of Hormuz is still below normal levels, with only a few vessels passing through compared to about 140 ships daily before the conflict.

Global currency movements highlight shifting investor sentiment following the ceasefire.

These movements indicate a broader shift away from safe-haven assets toward risk-sensitive currencies as geopolitical tensions ease.

The Central Bank of Nigeria (CBN) had earlier projected a positive outlook for the country’s external reserves despite recent declines.