Daily FX Rate: Naira Rallies as Gross External Reserves Hit $42bn
The Nigerian local currency, the naira, strengthened to N1,487 per U.S. dollar at the official window in the absence of pressure in the currency market.
Updated daily FX data from the Apex Bank record revealed that the exchange rate trend positive amidst broader dollar index depreciation against basket of major currencies in the global market.
Data from the Central Bank of Nigeria (CBN) showed the spot rate appreciated to N1487 after it broke the psychological barrier during the week from N1498 per dollar the previous day.
The spot rate hit an intraday high of N1499 in the official window, reflecting near-zero pressures in the forex market after a mild demand surge the previous day.
Meanwhile, gross FX reserves increased for the eleventh consecutive week, hitting $41.997 billion.Analysts said they expect the naira to remain stable, underpinned by resilient FX market liquidity and improving domestic inflows.
Analysts said prospective portfolio inflows are likely to benefit from the dovish shift in global monetary policy and the accompanying decline in treasury yields, which could enhance investor appetite for naira-denominated assets.
At the same time, stronger non-oil export receipts and reduced incentives for speculative positioning should reinforce the positive momentum and suggest a more balanced FX market outlook.
On the back of improved transparency and greater market efficiency, the supply of foreign exchange has risen sharply in 2025, TrustBanc Financial Group Limited said in a report.
In just eight months, total FX inflows have reached $35.21 billion, surpassing the entire 2024 total of $31.11 billion and now standing as the highest level in the past eight years, the firm said.
The strong supply has been broadly distributed, reducing concentration risk. Foreign investors account for 33%, while CBN’s contribution stood at 14%, underscoring the growing depth of private inflows.
TrustBanc reported that the CBN’s monthly interventions remain targeted, designed solely to address short-term market distortions.
Since September 2024, these interventions have averaged $605.6 million per month, with April 2025 seeing the highest intervention at $1.66 billion.
“It’s important to note that the intervention by the apex bank does not signal a return to a fixed exchange rate regime, nor an attempt to defend the naira at a particular level”, TrustBanc said.#Daily FX Rate: Naira Rallies as Gross External Reserves Hit $42bn
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