Naira Climbs to N1,418 as Foreign Reserves Hits $45.623bn
The naira appreciated further against the US dollar at the Nigerian foreign exchange market, gaining N0.80 to close at N1,418.26 compared with N1,419.06 quoted the previous day.
Based on data from the Central Bank of Nigeria (CBN), FX largely traded within the low and high bands of N1,414.00/US$ and N1,426.00 per dollar, respectively.
The exchange rate movement signalled the absence of significant pressure on the volume of dollars available at the supply side, analysts anticipate FX interventions to continuing to bridge liquidity gap.
“We expect the Naira to continue trading in line with prevailing market demand and supply conditions, supported by improving external reserves position”, Anchoria Securities Limited said in a note.
The local currency exchange rate weakened by 0.21% to N1,467/$ in the parallel market, reflecting mixed sentiments and varying pressures across the regulated official segment and the informal foreign exchange market.
Foreign reserves climbed to $45.623 billion following fresh inflows from investors that participated at the CBN OMO bills auction on Tuesday.
Market analysts expect this current level to remain firm in the near term supported by stronger foreign inflows driven by higher oil receipts, improved FPI participation, and consistent CBN FX management.
Exchange rate and FX market conditions in 2025 showed signs of gradual stabilisation following structural reforms, supported by improved FX supply and reduced market segmentation.
Increased liquidity at the official window and a narrowing spread with the parallel market reflected improved price discovery and growing confidence.
External reserves strengthened modestly, enhancing the authorities’ capacity to manage volatility, although sustainability remains contingent on oil receipts and non-oil FX inflows.
