Finally, Relief for Naira: Nigeria’s Reserves Hit 5-Year High Amid Global Uncertainty
- Amid despair and depression, the Nigerian currency rebounded in the official foreign exchange market on Thursday, October 16, 2025
- A new exchange rate emerged as demand for the US dollar thawed, leading to the naira’s gain
- Experts believe that the Central Bank of Nigeria (CBN) may reduce forex interventions in the official market
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
After three consecutive days of losses, the naira rebounded in the Nigerian Foreign Exchange Market (NFEM) on Thursday, October 16, 2025.
Also, Nigeria’s external reserves rose to $42.669 billion on Wednesday, October 15, 2025, the highest balance since 2019, from $42.589 billion, at the beginning of the week.
Source: Getty Images
CBN may cut back on FX interventions
According to analysts, the naira weakened earlier this week as dollar demand surged for the US greenback in the official market.
This marks a rare rebound after weeks of volatility that shook investor confidence
The market foreign exchange market continued to see a sharp drop in forex injections, according to a report by Market Forces Africa.
In September forex sales to authorised dealers and banks at the official window totaled $150 million, helping to balance dollar demand and supply shortages.
Analysts have predicted that there may be a reduction in FX interventions in October.
The naira rallies in all markets
They say the exchange rate direction showed there was an improved US dollar available at the supply side in the FX market.
Currency dealers priced the dollar at a high of N1,475 before settling at N1,474 per dollar.
Also, the naira climbed 0.17% in the parallel segment of the foreign exchange market, closing at N1,486 per dollar.
Trading activities at the FX market were done at a range of N1,464.42 to N1,475 during the trading session.
Nigeria’s reserves rose by about $18 million amid oil price volatility.
Crude oil prices decline
Amid the naira’s recovery, crude oil prices experienced tepid activities as trade tension and crude purchase cutback by India dominate the news
On Thursday, October 16, 2025, oil prices traded lower as traders prepared for a possible end to India’s Russian oil imports, which might reshape flows and increase demand from other producers.
Available data shows that Brent crude plunged $1.02 to sell at $60.89 per barrel, while US WTI declined by 54 cents to sell at $57.30 a barrel.
Gold prices climb
Meanwhile in the global commodity’s market, gold rose to a record high for the fourth session, as investors hedged on metal amid brewing US-China trade face-off and the US government shutdown.
Spot gold rose 1.484% to $4,285.56 per ounce, while US gold futures rose 1.84% at $4,300.99 per ounce.
Source: Getty Images
Experts expect commodities prices to rise, caused by gold’s safe-haven demand amid the Middle East tensions and interest rate cuts.
Fresh volatility hits FX market despite CBN interventions
Legit.ng earlier reported that after weeks of relative stability, the Nigerian naira has come under renewed pressure as demand for the U.S. dollar surged across foreign exchange markets, stirring fresh concerns about instability and investor confidence.
The local currency weakened by 0.39% on Tuesday, October 14, 2025, settling at ₦1,463.23 per dollar at the Nigerian Foreign Exchange Market, according to updated data from the Central Bank of Nigeria (CBN).
The drop marks the second consecutive day of losses, following a brief period of gains driven by foreign inflows and CBN support.
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Source: Legit.ng
