Naira Surges to 10-Month High as Investors Dump Dollar Assets

Story: written by Joseph October 30,2025
The Nigerian naira has climbed to its strongest level in ten months as foreign and local investors reduce their exposure to the US dollar, signaling renewed confidence in the domestic currency.

Traders said the rally followed improved foreign exchange inflows, sustained Central Bank interventions, and increased dollar liquidity in the market. The naira appreciated sharply on both official and parallel markets, closing at its highest rate since December 2024.

Market analysts attribute the surge to investors’ shift away from dollar holdings amid expectations of a more stable exchange rate and easing inflationary pressure. They also noted that tighter monetary policies and increased oil receipts have strengthened Nigeria’s external reserves.

“The naira’s rebound reflects growing investor optimism and a gradual return of confidence in the FX market,” said one Lagos-based currency trader. “Many investors are selling off dollars to take advantage of higher naira yields.”

Financial experts, however, cautioned that sustaining the momentum would require consistent policy reforms and continued discipline in fiscal management.