The local currency closed at ₦1,419.07 per dollar, improving from Monday’s rate of ₦1,429.31. This represents a 0.72% gain and signals growing stability in the foreign exchange market.

The naira also strengthened against other major currencies. It gained ₦2.98 against the British pound, trading at ₦1,917.20/£1 compared to ₦1,920.27 the previous day. Against the euro, it rose by ₦7.12 to close at ₦1,660.31/€1.

At GTBank’s forex counter, the naira appreciated by ₦3 against the dollar, closing at ₦1,435/$1, while at the parallel market, the exchange rate remained unchanged at ₦1,470/$1.

Analysts say the recent gains are partly due to reduced demand for foreign currency, which is common at the beginning of the year, as well as lower activity from offshore investors.

Despite the naira’s performance, foreign exchange inflows into the NAFEM window declined by 20.67% week-on-week, falling to $593.7 million from $748.4 million, according to a report by Coronation Merchant Bank.

Market watchers expect the Central Bank of Nigeria (CBN) to continue its interventions in the foreign exchange market, focusing on boosting liquidity and limiting speculative trading.

Meanwhile, Nigeria’s external reserves recorded a modest increase. 

The reserves rose by $264.56 million, up 0.58%, reaching $45.50 billion at the start of the year and further climbing to $45.56 billion as of January 2, 2025.

In contrast, the cryptocurrency market opened the year on a weaker note, with most major digital assets recording losses. Ripple (XRP) dropped by 5.2% to $2.25, Cardano (ADA) fell by 2.9% to $0.41, and Dogecoin (DOGE) declined by 2.6% to $0.15. Bitcoin slipped by 1.4% to $93,625, while Litecoin and Solana also recorded modest losses.

However, not all digital currencies were in the red. Binance Coin (BNB) gained 0.7% to trade at $914.53, while Ethereum edged up by 0.3% to $3,248. Stablecoins such as USDT and USDC remained unchanged at $1.