Banks Crash Dollar Exchange Rate As External Reserves Rise to New High
- The Central Bank of Nigeria has revealed that external reserves climbed to over $43 billion
- The rise in reserves has helped position the naira to achieve one of its best performances in recent months
- Experts have shared their opinion on Nigeria's current reserves and how government action is important for economic growth
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigeria’s foreign exchange reserves continue to increase and are now at the highest level in five years.
According to data from the Central Bank of Nigeria, as of October 30, 2025, Nigeria's reserves stand at $43.5 billion.
Source: Getty Images
Financial experts say the increase signals growing investor confidence, naira stability, and stronger support for government policies aimed at improving citizens’ welfare.
The most recent data from the Central Bank of Nigeria (CBN) showed that the naira closed trading on Friday, October 31, at N1,421 per dollar in the Nigerian Foreign Exchange Market (NFEM).
Friday’s exchange rate not only extended the naira’s strong rally but also marked the highest level the currency has reached in 2025.
Banks and forex traders are now selling the dollar at a cheaper rate. GTBank’s rate on Monday, November 3, is N1,440, while the black market is selling at N1,450, down from the previous rate of N1,500.
Expert shares opinion on naira, foreign reserves
Speaking on the naira's movement, Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), said the development demonstrates rising confidence in Nigeria’s economy from both local and foreign investors.
He added that the growth in reserves reflects fiscal discipline and more effective policy implementation.
Yusuf said:
“This is an indication that investors’ and citizens’ confidence is improving, which is good for the general economy."
He urged the government to channel the gains toward policies that reduce the cost of living and create jobs for Nigerians.
Source: Facebook
The CPPE boss also told Legit.ng that industrialisation is central to Nigeria’s long-term economic growth, job creation, and national sovereignty.
He noted that it is important for the Nigerian government to implement protectionist policies, as no nation has ever achieved industrialisation through indiscriminate trade liberalisation.
He said:
“Properly designed protectionist measures deliver broad developmental dividends. They stimulate industrial growth and create jobs, conserve foreign exchange and stabilise the naira."
Similarly, McAntony, former President of the Chartered Institute of Taxation of Nigeria (CITN), praised the government for rebuilding the nation’s reserves.
He described the increase as a crucial step toward long-term economic stability and called for policies that enhance the business environment to attract more foreign and domestic investments.
NAN reports that the founder of the Independent Shareholders Association of Nigeria (ISAN), Sunny Nwosu, described the rise in foreign reserves as a positive signal for the economy.
He urged the government to invest in agriculture, power, and manufacturing to ensure that the benefits of the stronger reserves are reflected in the daily lives of citizens.
Bismark Rewane predicts naira exchange rate
Earlier, Legit.ng reported that Bismarck Rewane, the Chief Executive Officer of Financial Derivatives Company, has projected that the naira will close at N1,492/$ in 2025.
The positive outlook, he said, is driven by the domestication of corporate debt, diaspora inflows and remittances, and a likely Eurobond issuance.
These factors are expected to improve dollar supply and reduce pressure on the exchange rate.
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Source: Legit.ng
