Dollar Crashes to N1,338 as Naira Strengthens, Reserves Hit $53.3bn
- Naira gains strength at official forex market, reaching N1,338 against the dollar
- Nigeria's external reserves rise to $53.30 billion, boosting confidence in the naira
- Parallel market sees dollar and euro values increase despite naira's appreciation
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The naira recorded a sharp gain at Nigeria’s official foreign exchange market on Thursday, with the dollar falling to N1,338 as improved forex liquidity continued to support the local currency.
The naira opened trading at N1,446/$ before strengthening significantly during the session, with transactions executed between N1,335 and N1,345 at the Nigerian Foreign Exchange Market (NFEM).
Source: Getty Images
Data from the Central Bank of Nigeria showed that total foreign exchange turnover stood at about $191.69 million, reflecting continued activity from foreign portfolio investors, exporters, non-bank corporates and other market participants.
The improved dollar supply has provided fresh support for the naira, although market activity moderated compared with the previous session.
NFEM interbank foreign exchange turnover fell by about 19 per cent from $235.99 million to approximately $191.59 million, while the number of deals declined from 213 to 176.
Pound and euro rates move as parallel market diverges
The naira also strengthened against major currencies at the official window.
It appreciated by 42 basis points against the British pound to close at N1,820.34, while the euro traded at N1,526.12, representing a 0.38 per cent gain for the naira.
However, the parallel market recorded a different trend as renewed demand pushed foreign currencies higher.
According to AIICO Capital Limited, the dollar rose 0.36 per cent to N1,405, while the euro climbed 0.31 per cent to N1,600.
The naira also appreciated against the pound by 0.26 per cent in the parallel market, trading around N1,900.
External reserves climb to $53.3 billion
Adding to the positive currency outlook, Nigeria’s gross external reserves increased by approximately $185.25 million to $53.30 billion.
The rise strengthens the country’s foreign exchange buffer and could provide additional confidence around the naira, particularly if stronger inflows are sustained.
Meanwhile, developments in the global oil market continue to influence Nigeria’s external position.
Brent crude traded around $88 per barrel on Thursday after three consecutive sessions of losses.
Oil market remains volatile
Oil prices remain caught between expectations of additional supply and persistent geopolitical risks.
Source: Getty Images
An agreement between Iran and Oman over revenue sharing around the Strait of Hormuz has raised hopes of improved supply conditions, while uncertainty over shipping routes and Ukrainian strikes on Russian energy infrastructure continue to support market volatility.
Saudi Arabia has also increased loadings at Persian Gulf terminals to reduce exposure to Red Sea shipping risks.
For Nigeria, sustained oil prices, stronger forex inflows and rising external reserves could remain crucial to the naira’s performance in the coming weeks.
Naira gains N11 against dollar in a week
Legit.ng earlier reported that the naira extended its recent recovery last week, closing at N1,346.49 per dollar in the official market after gaining N11.11 across five trading sessions, according to data from the Central Bank of Nigeria (CBN).
The week-on-week improvement of 0.83 per cent was driven largely by stronger dollar supply from foreign investors, exporters, and non-bank corporate entities, which helped ease pressure on the domestic currency.
On Friday, August 22, the naira edged up a further N1.14, or 0.08 per cent, in the Nigerian Foreign Exchange Market (NFEM), settling at N1,346.49 per dollar compared with N1,347.63 the previous day.
Naira depreciates by N7.09 against the dollar
Legit.ng earlier reported that the Nigerian naira fell against the US dollar in the official market on Wednesday, August 19, 2026, closing at N1,350.41 per dollar compared with N1,343.32 the previous day, a decline of N7.09 or 0.53%.
Data published by the Central Bank of Nigeria (CBN) showed the exchange rate movement in the Nigerian Foreign Exchange Market (NFEM), where the naira also weakened against other major currencies.
Source: Legit.ng
