Naira Gains N8.08 as Nigeria's External Reserves Reach 17-Year High
- The naira closed the week at N1,357.61 per dollar at the official FX market, gaining N8.08 week-on-week
- Nigeria's external reserves climbed to $52.25 billion, a 17-year high representing a 28.32% year-on-year rise
- The CBN rolled out new financial market reforms, including expanded access to OMO securities for non-bank investors
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigeria's external reserves crossed a significant milestone last week, hitting $52.25 billion, the highest level recorded in 17 years — as the naira held steady across both official and parallel foreign exchange markets.
Figures from the Central Bank of Nigeria (CBN) showed that the naira appreciated by N8.08 against the dollar over the course of the week, closing at N1,357.61 per dollar at the Nigerian Foreign Exchange Market (NFEM) on Friday.
Source: Getty Images
That compares with a closing rate of N1,365.69 per dollar the week before. On a day-to-day basis, the currency edged up by N0.04 from N1,357.65 recorded on Thursday.
Naira Remains Stable in Black Market
In the parallel market, the dollar traded at around N1,420, leaving a gap of 4.64% between the unofficial and official rates. That spread narrowed slightly from the 4.71% recorded in the prior period, suggesting both market segments remained broadly aligned.
Trading volumes in the interbank market picked up on Friday, with total turnover rising 9.12% week-on-week to $1 billion, up from $919 million on the same day the previous week.
The number of deals also jumped, from 639 on Thursday to 761 on Friday, a 19.09% increase, BusinessDay reports.
However, cumulative NFEM turnover through Thursday dipped slightly by 2.23% to $3.95 billion compared with $4.04 billion in the equivalent period a week earlier.
Despite that marginal drop in value, the number of transactions rose 3.17% to 1,791 from 1,736, pointing to continued activity in the market.
Nigeria's External Reserves Hit 17-Year High
The reserve figure of $52.25 billion reflects a 28.32% jump from the $40.72 billion posted during the same period in 2024, giving the apex bank a stronger buffer to manage FX liquidity and service the country's external obligations.
The CBN also announced a set of market reforms alongside the reserve milestone.
These include easing restrictions on Deposit Money Banks' access to the discount window and Standing Lending Facility, resuming tenored repo operations with maturities between four and 90 days, and widening participation in the Open Market Operations (OMO) market to cover non-bank financial institutions, corporates, and retail investors.
Source: Getty Images
Here are other currencies' exchange rates
The CBN also provided the updated currency exchange rates below:
- CFA: N2.39
- Yuan/Renminbi: N201.37
- Danish Krona: N210.21
- Euro: N1,571.70
- Yen: N8.54
- Riyal: N361.59
- South African Rand: N83.85
- Swiss Franc: N1,673.58
- Pounds Sterling: N1,840.10
- SDR: N1,855.85
- WAUA: N1,853.65
- UAE Dirham: N369.64
Customs exchange rate changes
Legit.ng had earlier reported that the Central Bank of Nigeria (CBN) adjusted the exchange rate used by the Nigeria Customs Service to value imported goods cleared through the country’s ports and airports.
The latest figure represents a marginal increase compared with the previous rate and reflects recent movements in the official foreign exchange market.
Source: Legit.ng
