Naira climbs to N1,337/$, FX reserves hit 17-year high
By Aboki Forex —
The naira strengthened to N1,337/$ at the Nigerian Foreign Exchange Market (NFEM) on Friday, as external reserves crossed $53 billion for the first time in over 17 years. Data from the Central Bank of Nigeria (CBN) showed the currency appreciated by 0.96 per cent during the week.
Weekly trading details
The naira closed at N1,337/$ on August 28, compared with N1,349.99/$ on August 24. It opened the week at N1,349.99/$, moved to N1,343/$ on August 26 and N1,336/$ on August 27, then settled at N1,337/$ on August 28. It traded within a range of N1,335/$ and N1,350/$ during the sessions.
FX turnover for the week dropped sharply by 48.7 per cent week-on-week to $2.71 billion. That is down from $5.28 billion recorded between August 17 and 21. The market saw its highest activity on August 26 and 27, with transactions worth about $913.76 million and $1.06 billion respectively. Turnover on August 24 stood at $731.18 million. The market was closed on August 25 for a public holiday.
In the parallel market, the naira also gained slightly, appreciating to N1,403/$ on Friday from N1,407/$ on Thursday.
Reserves and oil prices
Nigeria’s external reserves crossed the $53 billion mark during the week, reaching $53.11 billion as of August 24. That is the highest level in more than 17 years. Higher reserves give the country stronger external liquidity and could improve confidence in Nigeria’s ability to meet its foreign exchange obligations.
The naira’s gains came despite weaker international oil prices. Brent crude futures fell by 39 cents, or 0.43 per cent, to settle at $89.31 per barrel on Friday. West Texas Intermediate (WTI) dropped by 13 cents, or 0.16 per cent, to $83.40 per barrel. For the week, Brent declined by more than five per cent, while WTI fell by over four per cent.
CBN’s position
CBN Governor Olayemi Cardoso has dismissed claims that the apex bank is heavily intervening in the foreign exchange market to defend the naira. According to Cardoso, CBN interventions accounted for only about 1.2 to 1.3 per cent of total FX turnover in 2025.
He credited the improvements to reforms introduced by the CBN, including the FX Code, electronic trading platforms and a revised foreign exchange manual. Cardoso also said Nigeria has built sufficient economic buffers to manage external shocks and inflationary pressures arising from developments in the global economy.
For Nigerian businesses and consumers, the stronger naira and rising reserves could ease some pressure on the cost of imports and help stabilise the exchange rate, even as oil prices remain a risk to watch.