The naira appreciated week-on-week in the official foreign exchange market on Friday, closing at N1,348 per dollar to cap a week of steady gains against the greenback.
Data from the Central Bank of Nigeria showed the local currency maintained a largely positive trajectory throughout the week.
The naira opened at N1,344 per dollar on Monday, strengthened to N1,337 per dollar on Tuesday, slipped slightly to N1,340 per dollar on Wednesday, and firmed to N1,346 per dollar on Thursday before settling at N1,348 per dollar on Friday.
The movement reflects a gradual but consistent recovery in the official window.
At the close of trading last week, the naira stood at N1,358 per dollar in the official market.
The latest position, therefore, represents a N10 week-on-week appreciation, signalling renewed stability and improved market sentiment.
The naira’s performance across the week indicates a moderate but sustained demand-supply balance in the official market. The narrowing spread between the official and parallel segments also suggests improved liquidity conditions.
- The currency gained N10 week-on-week, moving from N1,358 per dollar to N1,348 per dollar in the official window.
- In the parallel market, the naira strengthened to N1,361.5/$ per dollar on Friday from N1,374/$ per dollar on Thursday.
- At the trading session previous Friday, the naira traded at N1,420/$ in the parallel market.
Nigeria’s external reserves have climbed to $48.5 billion, marking their highest level since mid-May 2013.
Checks on the Central Bank of Nigeria’s database confirm this is the strongest reserve position since May 14, 2013, when reserves stood at approximately $48.51 billion.
- Reserves crossed the $46 billion mark in January for the first time in about eight years and moved above $47 billion by February 11, also the first time in roughly eight years.
- The reserve accretion strengthens the central bank’s capacity to defend the naira.
- Higher reserves improve Nigeria’s ability to meet external obligations.
- The build-up provides a stronger buffer against global economic shocks and capital flow volatility.
The sustained increase in reserves has been a key factor underpinning the recent stability recorded in the foreign exchange market.
What you should know
The Central Bank of Nigeria projects that external reserves could rise to $51 billion by the end of 2026. The target forms part of the apex bank’s broader macroeconomic stabilisation framework.
- The framework is designed to strengthen the naira and reduce exchange rate volatility.
- It aims to restore investor confidence in Nigeria’s foreign exchange market.
- It also seeks to reinforce overall financial system stability.
If achieved, the $51 billion reserve target could further consolidate recent gains in the foreign exchange market and provide sustained support for the naira.
