The Naira closed the final trading session of the week on a positive trajectory against the US Dollar in the “official market,” extending its momentum driven by sustained efforts in foreign exchange (FX) market liberalization.
Key Closing Rate
On Friday, October 31, 2025, the Naira recorded an appreciation in the Nigerian Foreign Exchange Market (NFEM), the official window:
- Closing Rate: The Naira closed at ₦1,427.50 per US Dollar ($1).
- Daily Change: This closing rate reflects an appreciation of ₦3.50 compared to the previous day’s closing rate of ₦1,431.00/$.
Performance Analysis
The currency’s performance in the “official market” remains highly sensitive to market liquidity and policy adjustments from the Central Bank of Nigeria (CBN). This latest appreciation indicates that the CBN’s measures, including the adoption of the electronic FX matching system (EFEMS) and actions to clear outstanding FX backlogs, are continuing to yield results.
Market observers note that the improved liquidity is helping to stabilize rates and boost investor confidence, a stark contrast to the volatility witnessed earlier in the year. The NFEM experienced robust foreign currency turnover during the week, suggesting healthy market participation.
Outlook for the New Week
The continuous strengthening and stability in the official window are critical steps toward reducing the wide gap with the parallel market. Analysts forecast that if the current level of FX inflows and confidence is sustained, the Naira could further consolidate its position in the first week of November.
