No More N1,338/$: Naira Surges as Nigeria’s Forex Reserves Hit $53.3bn, Investors Return
- Naira appreciates to N1,337.28 per dollar, extending a week-long strengthening trend amid improved liquidity
- Nigeria's foreign exchange market benefits from rising dollar supply, supporting Naira's stable performance
- External reserves climb to $53.3 billion, marking a positive outlook for Nigeria's economic stability
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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 sustained its impressive run against the US dollar on Friday, August 28, 2026, extending a week-long appreciation streak amid improved foreign exchange liquidity and rising investor confidence.
The local currency closed at N1,337.28 per dollar in the official foreign exchange market, strengthening further as increased dollar supply continued to support trading conditions.
Source: Getty Images
Data published by the Central Bank of Nigeria (CBN) showed that the Naira gained N1.29 from Thursday’s closing rate of N1,338.58 per dollar.
Naira records weekly gains
Friday’s performance represented a 0.09 per cent appreciation from the previous day and extended a broader strengthening trend that has now lasted for about two weeks.
The Naira began the week at N1,346.97 per dollar on Monday before steadily gaining ground against the greenback.
By Friday, August 28, 2026, the currency had appreciated by N9.69, representing a 0.72 per cent gain against Monday’s rate.
The movement signals continued improvement in conditions at the Nigerian Foreign Exchange Market (NFEM), where greater liquidity has helped ease pressure on the domestic currency.
Market activity during the week reflected the trend. The Naira traded at N1,343.59 per dollar on Wednesday before gaining N5.01 on Thursday to close at N1,338.58, according to a report by MarketForces Africa.
Rising forex supply supports currency
The latest gains come as Nigeria's foreign exchange market benefits from stronger dollar availability.
Improved liquidity can reduce pressure on the Naira by making more foreign currency available to businesses, investors and other eligible market participants.
The currency’s recent performance also suggests that measures aimed at improving transparency and liquidity in the FX market may be helping to stabilise trading conditions.
However, sustained appreciation will depend on whether the improvement in dollar supply can be maintained over the longer term.
Foreign investors chase high naira yields
Another factor supporting demand for Nigerian assets is foreign portfolio investment.
International investors continue to bring hard currency into Nigeria’s financial markets to take advantage of relatively high yields available on Naira-denominated assets.
The attractive returns have increased the appeal of Nigerian fixed-income instruments, particularly for investors seeking opportunities while retaining the ability to exit the market when necessary.
Higher foreign participation can provide additional dollar liquidity and, in turn, support the Naira.
Nigeria’s reserves cross $53.3bn
Meanwhile, Nigeria’s external reserves continued to strengthen, providing another positive signal for the economy.
Updated market data showed that the country’s gross external reserves rose to $53.310 billion, from $53.297 billion, following a fresh inflow from an undisclosed external source.
Although the increase was modest, the reserves remain an important buffer for Nigeria’s external obligations and foreign exchange market stability.
Source: Getty Images
With the Naira gaining for a second consecutive week and reserves climbing above $53 billion, the latest data offers a cautiously positive picture of Nigeria’s foreign exchange position.
The key test, however, will be whether stronger FX liquidity, sustained investor inflows and rising reserves can translate into lasting stability for the Naira.
Dollar falls against naira as FX turnover doubles
Legit.ng earlier reported that the recent strengthening of the naira, which appreciated by 0.84% against the dollar, closed at N1,346.90/$ on August 21, 2026.
Amid soaring foreign exchange turnover exceeding $4.5 billion, Nigeria’s external reserves reached their highest level since 2009, driven by robust oil earnings and increasing FX inflows.
Source: Legit.ng
