Naira Stages Strong Comeback, Hits Two-Year High at N1,392 Per Dollar as CBN Adjusts Rates
- Nigeria's naira reached a two-year high at ₦1,392 per dollar amid easing liquidity pressures
- External reserves also rose to $46.07 billion due to higher crude oil production and supportive prices
- Analysts maintain a cautiously optimistic outlook for the naira's future based on recent market improvements
Nigeria’s naira has extended its recent rally, briefly touching a two-year high of ₦1,392 per dollar at the Central Bank of Nigeria foreign exchange window, as easing liquidity pressure and stronger inflows lifted sentiment across the currency market.
The local currency closed the latest trading session on a positive note, building on the previous day’s gains.
Source: Getty Images
At the Nigerian Foreign Exchange Market, the naira appreciated by 5 basis points against the US dollar to settle at ₦1,400.48/$, underscoring a sustained improvement in market confidence.
Strong inflows support currency rally
Market data showed that the naira traded within an intraday range of ₦1,392/$ and ₦1,415/$, supported by steady demand from foreign portfolio investors and active participation from local players.
Analysts noted that the absence of significant liquidity pressure helped the currency maintain its upward trajectory.
The improved sentiment reflects ongoing reforms in Nigeria’s foreign exchange framework, as well as growing confidence in the Central Bank of Nigeria’s ability to manage volatility through improved transparency and market-driven pricing.
External reserves climb above $46bn
Supporting the naira’s performance, the CBN reported a further rise in Nigeria’s gross external reserves. Latest figures showed reserves increased by $27.86 million from the previous day to $46.07 billion as of January 27, 2026.
The steady accretion to reserves has been bolstered by higher crude oil production levels and relatively supportive global oil prices.
This improvement provides the central bank with a stronger buffer to meet foreign exchange obligations and stabilise the local currency when needed.
Oil prices provide a tailwind
Global oil prices also offered support to Nigeria’s external position. Crude prices climbed to their highest levels since late September after a winter storm disrupted US crude output.
Supply concerns were further amplified by continued outages in Kazakhstan and a weaker US dollar.
Brent crude rose by 3.71 per cent, or $2.40, to trade around $67.17 per barrel, while US West Texas Intermediate gained 2.38 per cent to approximately $62.07 per barrel.
Higher oil prices are particularly significant for Nigeria, where crude exports remain a major source of foreign exchange earnings.
Gold surges as dollar weakens
Meanwhile, global financial markets reflected rising uncertainty, with gold prices surging to record levels.
Gold climbed above $5,300 per ounce for the first time, driven by a weakening US dollar and growing investor concerns ahead of the US Federal Reserve’s policy decision.
Spot gold prices jumped by 136 basis points to $5,083.69 per ounce, while US gold futures eased slightly to $5,117.09 per ounce.
According to AIICO Capital Limited, safe-haven demand is likely to continue supporting gold prices amid mixed market sentiment and uncertainty around oil price direction.
Outlook remains cautiously optimistic
With improving reserves, stronger inflows, and favourable external conditions, analysts say the naira’s near-term outlook appears cautiously optimistic.
Source: Getty Images
However, sustained gains will depend on consistent FX inflows, disciplined monetary policy, and stability in global commodity markets.
Dollar crashes to lowest level in 4 years,
Legit.ng earlier reported that the US dollar has fallen to its lowest level in four years, opening door for naira and other global currencies to appreciate.
The fall of the dollar has prompted investors to shift funds into traditional safe havens such as gold, euro and the Swiss franc.
The Guardian UK reports that the dollar dropped 1.3% against a basket of major currencies on Tuesday, marking its fourth consecutive day of losses, before slipping a further 0.2% on Wednesday morning to its weakest level since February 2022.
Source: Legit.ng
