Foreign reserves hit $42.8bn as naira appreciates to N1,455/$

Foreign reserves hit $42.8bn as naira appreciates to N1,455/$

The Naira continued its upward trajectory this week, closing stronger at N1,455.5 per US dollar on Friday, according to figures published on the Central Bank of Nigeria (CBN) website. This marks a modest gain from Thursday’s N1,461/$1, reinforcing a trend of relative stability in the foreign exchange market.

Throughout the week, the local currency showed resilience, appreciating gradually from N1,464.5/$1 on Monday and Tuesday to N1,462/$1 on Wednesday. In the parallel market, rates hovered between N1,487/$1 and N1,492/$1, indicating a narrowing gap between official and street rates.

Compared to last week’s closing rate of N1,471/$1, the Naira appreciated by N15.5, or roughly one per cent, week-on-week. This follows a similar pattern from the previous week, when the currency firmed up from N1,474/$1 to N1,471/$1.

Market analysts attribute the sustained gains to increased dollar inflows, strategic liquidity interventions by the CBN, and growing investor confidence in the government’s monetary reforms.

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In a related development, Nigeria’s foreign exchange reserves climbed to $42.8 billion—up from $42.79 billion earlier in the week—marking the highest level since September 12, 2019, when reserves stood at approximately $42.84 billion. Analysts say the uptick signals improved foreign inflows and prudent reserve management, providing a stronger buffer against external shocks.

CBN Governor, Yemi Cardoso, speaking at the IMF/World Bank Annual Meetings in Washington, said the Naira is now “more competitive” following months of economic reforms and stabilization efforts. He noted that Nigeria’s proactive measures have helped build resilience against global economic headwinds.

“We were able to create resilience and buffers against potential shocks,” Cardoso said. “In terms of anchoring expectations, we found that those who followed the Nigerian economy were fairly comfortable.”

He added that investor confidence is strengthening, buoyed by reforms that have stabilized the Naira, slowed inflation, and improved transparency in monetary operations. The narrowing gap between official and Bureau de Change rates—now below two per cent—is seen as a sign of reduced speculation and growing market confidence.

With reserves edging higher and the Naira posting consistent gains, market watchers remain cautiously optimistic. Sustained fiscal discipline, transparent FX management, and ongoing structural reforms are expected to further bolster the local currency in the weeks ahead.

Foreign reserves hit $42.8bn as naira appreciates to N1,455/$