The Naira weekly Forecast state that Naira will quote within a range of N1,350 to N1,420 versus the US dollar by the end of this week in the official market.
In the past seven days, Naira has been appreciating approximately 2%. And it is at N1,390/1 at the beginning of this month, but is still under the pressure of arbitrage.
Buy rates have been pegged at N1,440/ USD in the black market. With sell rates going between N1,450 and N1,460/ USD in the past week.
In the past few months, the Naira has been gaining strength, 4.24% in the last one month. Approximately 9.15% in the last year, and it is no longer approaching the late 2024 peak of approximately N1,717/per dollar.
The Apex Bank maintain high rates to take out liquidity, which has dampened by the high import demand on the exchange rate.
The Central Bank is soaking up the superfluous Naira by keeping the Monetary Policy rate constant. This renders it expensive to borrow the Naira and purchase dollars by speculators. As it helps to sustain the N1,364 per dollar price.
Dangote Effect: By the beginning of 2026, the production of the refinery that is almost equal to 700,000 barrels per day has reduced. The foreign-exchange requirement that previously financed the imports of petroleum.
The NAFEM window is still in the market focus. Failure by the Central Bank to issue sufficient dollars this week can result into an increase in the spread on the parallel market and this will put the official rate under pressure to follow.
Without any significant announcement related to increase in foreign reserves or higher inflows of loans. Then the curve is a slight depreciation by the weekend through settlement of weekly forex liabilities by companies.
In general according to Naira weekly Forecast, the Naira will be robust in early 2026. As it will increase due to external inflows and policy changes.
Market observers are optimistically wary of the stability, despite the new volatility in the global forex market.
