September 16, 2025
The Nigerian naira, for the first time in five-months surged to a high of N1,497.5/$ at the first trading session of the week in the official market.
Naira last traded at such a level at the Nigerian foreign exchange market on March 4
The recent feat was supported by better foreign exchange (FX) liquidity and less demand pressure which correlated with the weakness in the dollar in the global foreign exchange market.
A member of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria, Professor Murtala Sagagi, expressed optimism about the naira’s future, predicting it could strengthen to around N1,400/$ by the end of 2025.
READ MORE; Naira Appreciates To N1,535 Against U.S Dollar.
His prediction is supported by observations that were made at the July meeting of the Monetary Policy Committee (MPC), and the CBN made the information public on September 12, they include a rise in foreign investment, an improvement in the balance of payments, and a daily increase in crude oil production.
Sagagi stated that “With the recent increase in daily crude oil production, new inflows of capital, and an improved balance of payments, it is likely that the naira will continue to appreciate, potentially reaching the projected N1,400 per dollar before the end of the year.”
He also highlighted the importance of reducing inflation and the ongoing effectiveness of the Central Bank of Nigeria.
Gold waxed strongly amid a weak dollar, reaching yet another record high on Tuesday. Before the Fed meeting, it was unlikely that the outlook for US interest rates will make significant change.
READ MORE; Forex Traders Say Exchange Rate Boosted As Chinese Traders Now Collect Naira Instead Of Dollars
Gold gained bullish momentum in the second half of Monday’s trading session and rose almost 1 percent after a calm start to the week. The precious metal is trading at a new record-high above $3,680 as it continues its rally in Tuesday’s European session.
Additionally, Trump’s attempts to fire Fed Governor Lisa Cook before this week’s meeting have failed, even if his choice for the Fed was confirmed.
The Feds anticipation of rate cut on Wednesday evening is partially to responsible for this. Although it also shows that the outside world is favorable.
The prospect of lower borrowing costs and strong corporate optimism is driving the continued growth of global equity markets.
