Naira Closed at N1,346 as Gross External Reserves Rise to $52.657bn
Strengthened by N11.11 in 5 days, the Nigerian Naira traded positively against Western currencies in the foreign exchange market, supported by robust US dollar liquidity.
The market was mostly liquid, with interbank foreign exchange activities reflecting demand and supply indicators that set the rate direction last week.
In the official market, the currency appreciated by 0.83% week-on-week, closing at N1,346.49 per US dollar, according to data from the Central Bank.
Similarly, the naira saw a slight gain in the parallel market, settling at N1,400.61 as the informal segment experienced balanced demand and supply for hard currency,
Inflows from foreign investors, non-bank corporates, and exporters bolstered FX supply. Optimism about the exchange rate outlook remains strong, with naira bulls projecting the rate will close at N1350 per dollar in 2026.
Nigeria’s external reserves increased marginally by 0.65% week-on-week to US$52.657 billion, indicating a continued improvement in the country’s external liquidity position.
In the commodities market, crude oil prices were on track to record a second consecutive weekly gain, as prospects for peace in the Middle East weakened further amid U.S. threats to impose the “toughest sanctions in history” on Iran and continued Ukrainian drone attacks on Russian refineries.
Brent crude traded at US$94.03 per barrel, up 0.27%, while West Texas Intermediate (WTI) stood at US$86.95 per barrel, up 0.14%. Analysts said high oil prices have been supporting the growth of external reserves.
Increased FX receipts from hydrocarbon sales continue to reduce fiscal pressure, with borrowing from local and external debt capital markets moderating – with less than N8 trillion raised from bonds in 8 months.
Foreign currency analysts and traders expect the naira to remain broadly stable in the near term, supported by improved FX liquidity and stronger external reserves.
Elevated oil prices are expected to continue to support Nigeria’s external position, although geopolitical tensions may sustain volatility in the oil market.
With gross external reserves racing towards $53 billion, Broadstreet analysts have maintained a bullish outlook for the local currency. The average fair value of the unit had been pegged between N1330 and N1350 for the financial year 2026.
But concerns remain, as some economists warn that a stronger local currency isn’t good for Nigeria’s exports, due to Nigeria’s lack of competitive and comparative cost advantages.
#Naira Closed at N1,346 as Gross External Reserves Rise to $52.657bn# Naira Rises to N1,349/$ as Interbank FX Turnover Spikes 266%
