New Exchange Rate: CBN Crashes Dollar as Naira Appreciates to N1,506 in Official Window
- The Nigerian currency has remained strong in the official and parallel markets, driven by inflows into the FX markets
- The local currency closed positively last week and resumed strongly against the dollar and major global currencies
- The naira’s rebound is propelled by Nigeria’s surging reserves, which have risen to $41.5 billion, from $41.44 billion
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
On Monday, September 8, 2025, the naira strengthened to N1,506 per dollar in the official window
The development also comes as Nigeria’s foreign reserves rose to $41.5 billion from $41.44 billion.
Source: Getty Images
Naira steadies as experts give a positive outlook
According to data from the Central Bank of Nigeria (CBN), the dollar spot rate settled at N1,506.8433 per dollar at the official window as demand pressure thinned.
The exchange rate improved from N1,514.8671 in the first week of September due to enough liquidity in the currency market.
Experts have predicted that the naira will remain relatively strong in the global currency market amid broader pressures on the US currency.
According to a report by Market Forces Africa, the Nigerian currency appreciated by N16.70 to close at N1,514 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) last week.
“We are noticing renewed confidence in the Nigerian economy as investors look for safe havens for investment,” Janet Ogochukwu, senior banker and economist, said.
She said that in the near term, the naira will remain steady, given the robust reserves and inflows from different sources.
Robust FX inflows hold naira up against dollar
In the parallel segment of the FX market, the naira exchanged for N1,540 per dollar.
Amid the naira’s surge, total FX inflows stood at $567.2 million, less than $706.7 million in the week before.
Foreign Portfolio Investment (FPIs) led with the highest inflows, accounting for $184.1 million, representing 32.5% of the overall inflows.
Analysts at Coronation Merchant Bank said that the apex bank intervened in the FX market with $173 million, representing 30.5% inflows.
Data showed that inflows from banks and non-corporate accounted for 16.6% and 16.2%, respectively, while others accounted for 4.3%.
Nigeria’s gross external reserves hit $41.499 billion over sustained inflows across foreign sources, including oil revenue, despite price fluctuations in the global commodity market.
Crude oil prices continue to fluctuate
Last week, Brent crude dipped 3.85%, closing at $65.5 per barrel relative to $68.12 in the previous week,
The figure brings the year-to-date decline to 12.25%, with the 2025 average price at $69.98 per barrel, representing 12.37%, lower than the 2024 average.
Oil prices rose earlier in the week on supply concerns linked to news of US sanctions on Iranian shipments and steady Asian purchases.
However, the rebound lost momentum from midweek as a softer US jobs report raised fears that an economic slowdown could dampen oil demand.
US inventories push crude prices down
This was exacerbated by the unexpected build in US crude inventories, which showed weaker near-term consumption, while renewed speculation of additional OPEC+ supply into the market weighed on sentiment.
Experts believe that these factors pushed Brent crude into a steady fall at the end of last week.
Source: Getty Images
Analysts expect crude prices to continue to fluctuate, with market direction relying on the balance between demand signals and producer supply decisions.
Naira hits five-month high at N1,514 per dollar
Legit.ng earlier reported that the naira closed last week at a five-month high of N1,514.86 per dollar at the official Nigerian Foreign Exchange Market (NFEM), according to Central Bank of Nigeria (CBN) data.
This marks a strong start to September, with the local currency strengthening from N1,526.09/$ at the beginning of the month.
The naira last traded below N1,515/$ on March 6, when it closed at N1,512.30/$.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
