Naira Gains N1.31 to Close at N1,329.16/$1 as FX Turnover Jumps 122.9%
By Aboki Forex —
The naira appreciated by N1.31 against the US dollar at the official market on Wednesday, September 30, closing at N1,329.16/$1 in the Nigerian Foreign Exchange Market (NFEM). The rate was N1,330.47/$1 on Tuesday, a gain of 0.09%.
The stronger close came as trading activity jumped sharply. Market turnover rose 122.9% to $179.577 million from $80.582 million, while the number of deals climbed to 94 from 37, according to Central Bank of Nigeria data.
Naira Falls Against Pound, Euro
The naira lost ground against the other two major currencies in the same session. It depreciated by N5.97 against the British pound to close at N1,766.59/£1, compared with N1,760.62/£1 on Tuesday.
Against the euro, the local currency shed 50 kobo to close at N1,510.06/€1, down from N1,509.56/€1.
At the parallel market, the naira held steady at N1,370/$1. The rate at GTBank's foreign exchange desk also stayed flat at N1,338/$1.
Net Usable Reserves Hit $40 Billion
The CBN said Nigeria's net usable external reserves now stand at about $40 billion, up from $859 million when the current administration took office in 2023. At that level, the reserves were below what was needed to cover one month of import obligations.
Muhammad Abdullahi, Deputy Governor, Corporate Services, disclosed the figures on Tuesday at the opening of the 38th Seminar of Finance Correspondents and Business Editors in Abuja. He said reforms implemented by the apex bank helped lift the net external reserves to the current level.
Net external reserves refer to foreign exchange available for immediate use after accounting for known short-term obligations. That differs from gross reserves, which cover the broader stock of foreign assets the country holds.
Nigeria's gross foreign exchange reserves rose to about $54.6 billion in mid-September, the highest in more than 18 years.
Policy Backdrop
The naira's midweek showing comes after a shift in the CBN's monetary policy stance. The Monetary Policy Committee recently cut the Monetary Policy Rate by 350 basis points to 23.0%.
Stronger external reserves, heavier FX market activity and a lower benchmark rate are now shaping conditions in the naira market.
For importers and businesses buying dollars, the official rate remains below the parallel market, with a gap of about N40. Higher turnover suggests more supply is reaching the market, though the naira's losses against the pound and euro show pressure has not disappeared across all currency pairs.