Naira extends rally to N1,337.28 per dollar as reserves climb to $53.31bn
By Aboki Forex —
The naira closed at N1,337.28 per dollar in the official foreign exchange market on Friday, August 28, 2026, extending a week-long appreciation streak. The Central Bank of Nigeria (CBN) data showed the currency gained N1.29 from Thursday's closing rate of N1,338.58 per dollar.
Steady gains through the week
Friday's performance represented a 0.09 per cent appreciation from the previous day. It extended a broader strengthening trend that has now lasted for about two weeks.
The naira began the week at N1,346.97 per dollar on Monday before gaining ground. By Friday, the currency had appreciated by N9.69, a 0.72 per cent gain against Monday's rate.
Market activity reflected the trend. The naira traded at N1,343.59 per dollar on Wednesday before gaining N5.01 on Thursday to close at N1,338.58, according to a report by MarketForces Africa.
The movement signals improved conditions at the Nigerian Foreign Exchange Market (NFEM), where greater liquidity has eased pressure on the domestic currency. Increased dollar supply has helped support trading conditions for businesses, investors and other eligible market participants.
Reserves climb above $53 billion
Nigeria's external reserves continued to strengthen. Updated market data showed gross external reserves rose to $53.310 billion, from $53.297 billion, following a fresh inflow from an undisclosed external source. The increase was modest, but reserves remain an important buffer for Nigeria's external obligations and foreign exchange market stability.
Foreign portfolio investment is also supporting demand for Nigerian assets. International investors continue to bring hard currency into Nigeria's financial markets to take advantage of relatively high yields on naira-denominated assets. Attractive returns have increased the appeal of Nigerian fixed-income instruments, particularly for investors seeking opportunities while retaining the ability to exit the market when necessary.
The test ahead for the naira
With the naira gaining for a second consecutive week and reserves above $53 billion, the latest data offers a cautiously positive picture. The naira had also appreciated by 0.84 per cent against the dollar, closing at N1,346.90 per dollar on August 21, 2026. Foreign exchange turnover exceeded $4.5 billion amid robust oil earnings and rising FX inflows, with reserves reaching their highest level since 2009.
The key test is whether stronger FX liquidity, sustained investor inflows and rising reserves can translate into lasting stability for the naira. The current run shows improvement, but the gains depend on maintaining dollar supply over the longer term.