Naira gains N8.08 as CBN releases latest FX rates, external reserves hit $52.25bn

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The naira appreciated by N8.08 against the dollar last week, closing at N1,357.61 per dollar at the official Nigerian Foreign Exchange Market (NFEM) on Friday. This came as Nigeria's external reserves crossed $52.25 billion, the highest level in 17 years.

Central Bank of Nigeria (CBN) data showed the naira closed at N1,357.61, compared with N1,365.69 in the previous week. On a day-to-day basis, it rose by N0.04 from N1,357.65 recorded on Thursday.

Parallel market and trading volumes

In the parallel market, the dollar traded at around N1,420, leaving a gap of 4.64% between unofficial and official rates. That spread narrowed from 4.71% in the prior period, suggesting both segments remained broadly aligned.

Interbank market turnover rose 9.12% week-on-week to $1 billion on Friday, up from $919 million the previous Friday. The number of deals jumped from 639 on Thursday to 761 on Friday, a 19.09% increase.

Cumulative NFEM turnover through Thursday dipped 2.23% to $3.95 billion, compared with $4.04 billion in the same period a week earlier. Despite the marginal drop in value, transactions rose 3.17% to 1,791 from 1,736, pointing to continued market activity.

Reserves at 17-year high

The reserves figure of $52.25 billion reflects a 28.32% jump from $40.72 billion recorded in the same period in 2024. It gives the apex bank a stronger buffer to manage FX liquidity and service the country's external obligations.

The CBN also announced new financial market reforms. 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.

Latest CBN exchange rates

The CBN updated its exchange rates for major currencies: 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.

What it means for the naira

The record reserves level gives the CBN more room to defend the naira and smooth FX volatility. For businesses and importers, improved FX buffers could mean more stable access to dollars and less pressure on pricing.

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