Naira Maintains Strong Performance with Seven-Day Winning Streak Against US Dollar
The Nigerian naira has demonstrated remarkable resilience in the foreign exchange market, recording seven straight days of appreciation against the United States dollar. This sustained positive performance has allowed the national currency to close the trading week on a strong note, securing a new exchange rate that reflects improved market conditions.
Official Market Data Shows Consistent Gains
According to data obtained from the Central Bank of Nigeria, the naira strengthened significantly during the trading week. The currency moved from ₦1,421.46 per dollar at the beginning of the week to ₦1,417.95 per dollar by January 16, 2026. This movement represents a gain of ₦3.51, equivalent to approximately 0.25% appreciation over five trading sessions.
The weekly performance breakdown shows:
- January 12 – ₦1,425 per dollar
- January 13 – ₦1,420.25 per dollar
- January 14 – ₦1,419.50 per dollar
- January 15 – ₦1,420 per dollar
- January 16 – ₦1,417.95 per dollar
Market Analysts Point to Multiple Contributing Factors
Financial experts attribute the naira's sustained appreciation to several key factors. Increased dollar supply in the market has played a crucial role, with inflows from exporters, importers, and non-bank corporates boosting liquidity significantly. The Central Bank of Nigeria maintained a hands-off approach during this period, making no visible interventions while market forces drove the positive movement.
Financial market analyst Chukmeke Alozie provided insights to Legit.ng, noting that while current conditions are favorable, future developments could present challenges. Alozie specifically mentioned that the nomination of Kevin Warsh as President Trump's choice for Federal Reserve chair could potentially impact the naira's performance in upcoming trading sessions.
Parallel Market Mirrors Official Gains
The black market followed a similar trajectory, with Bureau De Change operators reporting improved rates for customers. According to Abdullahi, a BDC operator, the dollar rate declined by approximately ₦5 during the week, moving from around ₦1,487 to about ₦1,470. Other major currencies including the British pound and euro also showed improved rates, providing better deals for customers engaged in large transactions.
Naira Performance Against Other Global Currencies
The official market data reveals the naira's standing against various international currencies:
- CFA: ₦2.55
- Yuan/Renminbi: ₦199.49
- Danish Krona: ₦221.23
- Euro: ₦1,652.22
- Yen: ₦8.99
- Riyal: ₦369.66
- South African Rand: ₦86.82
- SDR: ₦1,916.49
- Swiss Franc: ₦1,804.00
- Pounds Sterling: ₦1,906.23
- U.S. Dollar: ₦1,386.55
- WAUA: ₦1,930.26
CBN Reforms Under Governor Cardoso's Leadership
The sustained appreciation occurs against the backdrop of significant reforms implemented under Central Bank Governor Yemi Cardoso's leadership. These strategic changes include the introduction of the Foreign Exchange Code and the Electronic Foreign Exchange Matching System, both designed to enhance market transparency and reduce arbitrage opportunities.
The Foreign Exchange Code establishes ethical conduct and governance standards for market dealers, while the Electronic Foreign Exchange Matching System provides real-time market data that helps curb speculative activities. These institutional improvements have contributed to creating a more stable and predictable foreign exchange environment in Nigeria.
Market analysts emphasize that while the current appreciation reflects steadier liquidity and reduced volatility, sustaining the naira's recovery will depend on continued foreign currency inflows and stable global economic conditions. The coming weeks will be crucial in determining whether the national currency can maintain its positive momentum against global economic headwinds.
