Naira Hits N1,315/$ as Nigerian Currency Records Strongest Level in Over 2 Years
- The naira gained 0.84% at the official FX market on Thursday, reaching a level not seen since April 2024
- Nigeria's external reserves climbed to $54.08 billion, the highest in over 17 years, according to the CBN
- The currency also strengthened at the parallel market, moving from N1,410 to N1,400 per dollar on Friday
PAY ATTENTION: Find it fast with our new search feature at Legit.ng!
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The naira climbed to N1,315 per dollar at the official foreign exchange market on Thursday, September 5, marking its best performance since the Central Bank of Nigeria (CBN) introduced the Electronic Foreign Exchange Matching System (EFEMS).
Data from the Nigerian Foreign Exchange Market (NFEM) showed the currency gained 0.84 per cent compared to the N1,326 per dollar rate recorded on September 2. The last time the naira traded at the N1,300 level was in April 2024.
Source: UGC
Naira Gains Ground at Parallel Market
The recovery was not limited to the official window. At the parallel market, the naira strengthened to N1,400 per dollar on Friday, improving from N1,410 per dollar the previous day.
The gains across both segments of the market come as Nigeria's external reserves reach levels not seen in more than 17 years.
CBN data showed reserves stood at $54.08 billion as of Thursday, up from $45.56 billion recorded on January 2. That is a year-to-date increase of $8.51 billion, or 18.69 per cent.
Reserves at 17-Year High
The sharp growth in foreign reserves has been closely watched as a key indicator of Nigeria's external financial health.
Source: UGC
A stronger reserve buffer gives the CBN greater capacity to intervene in the FX market and defend the naira when demand for dollars rises.
The naira's appreciation and the reserve build-up signal a period of relative stability for the currency, though the gap between the official and parallel market rates remains wide at roughly N85 per dollar.
Source: Legit.ng
