The naira oscillated around the N1570-1575/$ range at the black market in the early hours of Saturday in Nigeria’s business capital.
Increased market confidence has resulted from the Central Bank of Nigeria’s (CBN) reforms, aimed at closing gaps and boosting foreign inflows.
The outlook is still mixed, even though the government has taken steps to maintain a robust supply side by selling U.S. dollars to Nigerian banks and granting informal currency traders access to foreign exchange at the official rate.
Comercio Partners recently disclosed that the worst-case scenario for the naira in the first half of 2025 will likely be the N1,700/$ baseline.
The dollar index posted a weekly decline amid a delay in the U.S.-planned trade tariffs. The safe-haven currency lost momentum after President Donald Trump expressed optimism that things might not be as dire as anticipated and that a peace agreement between Russia and Ukraine could be reached.
Furthermore, Trump announced on Friday that he intends to begin imposing duties on imported automobiles on April 2.
Hopes for a peace agreement between Russia and Ukraine helped the euro and other European currencies.
The Fed’s favored inflation indicator, the core Personal Consumption Expenditures Price Index, is expected to be lower later this month than originally anticipated, according to U.S. producer pricing data for January, which was followed by Friday’s retail sales data.
Trump called Ukrainian President Volodymyr Zelensky and Russian President Vladimir Putin to discuss the situation in Ukraine.
Meanwhile, the CBN underlined that ATM fees for on-site and off-site withdrawals from other banks are based on the assumption that users can withdraw a maximum of N20,000 per transaction.
The Nigerian Central Bank also urged users to explore other payment methods, such as POS terminals, mobile banking apps, and other digital payment channels.
Olumide Adesina is a financial market writer, analyst and investment trader. Message Olumide on Twitter @Olumidecapital
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