Naira Gains to N1,315/USD, Hits Strongest Level Since April 2024
By Aboki Forex —
The naira appreciated by 0.84 per cent at the official foreign exchange market on Thursday, settling at N1,315 per dollar. That is the strongest closing rate since April 2024, according to data from the Nigerian Foreign Exchange Market.
The rate recorded on September 5 compares with N1,326 per dollar on September 2. It is also the best performance since the Central Bank of Nigeria introduced its Electronic Foreign Exchange Matching System.
Parallel market strengthens
The recovery extended to the parallel market. On Friday, the naira traded at N1,400 per dollar, improving from N1,410 per dollar the previous day.
The gains across both segments come as Nigeria's external reserves climb to levels not seen in over 17 years. CBN data put reserves at $54.08 billion as of Thursday, up from $45.56 billion on January 2. That is a year-to-date increase of $8.51 billion, or 18.69 per cent.
Reserves boost CBN firepower
The sharp growth in foreign reserves is seen as a key indicator of Nigeria's external financial health. A stronger reserve buffer gives the central bank greater capacity to intervene in the FX market and defend the naira when dollar demand rises.
What this means for the naira
The appreciation and reserve build-up point to a period of relative stability for the currency. Still, the gap between official and parallel market rates remains wide at roughly N85 per dollar, a sign that pressure on the naira has not fully disappeared.