Naira Gains Against Dollar as Nigeria Reserves Hit 17-Year High
- The naira gained against the dollar at the official market on Thursday, August 13, as the CBN removed key restrictions on banks
- Nigeria's external reserves climbed to $52.19 billion as of August 12, 2026, their highest level in 17 years
- Analysts said the CBN's rule changes could deepen activity in the money and fixed-income markets
PAY ATTENTION: Mark Legit.ng as a preferred source, and our content will appear higher in your Google feed!
The Nigerian naira closed stronger against the US dollar on Thursday, August 13, at the Nigerian Autonomous Foreign Exchange Market (NAFEM), gaining N2.93, or 0.22%, to close at N1,357.65/$1, compared with N1,360.58 recorded on Wednesday.
At the GTBank forex desk, the currency also firmed by N3 to N1,367/$1. In the parallel market, however, the naira remained unchanged at N1,395/$1, leaving the gap between the two segments at roughly 2.75%.
Source: Getty Images
Naira Strengthens Against Pound and Euro
The naira's gains were not limited to the dollar. Against the pound sterling, it rose by N6.94 to close at N1,834.05 per pound, while it gained N5.01 against the euro to trade at N1,567.00 per euro at the official market.
Despite the positive exchange rate movement, interbank foreign exchange turnover fell sharply by 53.13% to $79.09 million on Thursday, down from $168.76 million on Wednesday. The number of deals dropped from 190 to 98, a decline of 48.42%.
This followed a surge in activity on Wednesday, when total NFEM turnover jumped 228.38% to $607.47 million from $184.99 million on Tuesday.
Nigeria's Reserves Hit 17-Year High
A key factor underpinning the naira's recent performance is the continuing rise in Nigeria's external reserves, which reached $52.19 billion as of August 12, 2026.
That figure marks a 17-year high and represents a 28.39% increase from the $40.65 billion recorded during the same period in 2025, according to CBN data.
The CBN said it had removed restrictions that previously barred banks participating in the NFEM and primary auctions of government securities from accessing its Standing Lending Facility, also known as the Discount Window.
Under the revised framework, banks can now engage in both foreign exchange transactions and government securities auctions without forfeiting access to CBN liquidity support.
The changes also cover Tenored Repo Operations and Open Market Operations participation.
The apex bank said the reforms are designed to improve money market functioning, strengthen how monetary policy decisions flow through the financial system, and encourage broader market activity.
Source: Getty Images
Analysts at Quest Merchant Bank Limited said the measures are likely to attract more participants to the fixed-income market and improve overall liquidity conditions.
They added that the reforms reflect growing confidence in the stability of Nigeria's foreign exchange market and the adequacy of its reserves, both of which could help support a steadier naira exchange rate in the sessions ahead.
CBN says naira stability is market-driven
Earlier, Legit.ng reported that the naira has remained relatively stable against the United States dollar as reforms and improved liquidity continue to shape the foreign exchange market.
The Central Bank of Nigeria has said the recent stability of the naira is being driven by market forces and increased liquidity, rather than artificial support from the apex bank.
CBN Governor Olayemi Cardoso disclosed this on Wednesday while briefing journalists in Abuja after the Monetary Policy Committee meeting.
Source: Legit.ng
