Naira hits two-year high of N1,315.67 as external reserves reach $53.99bn
By Aboki Forex —
The naira climbed to a two-year high of N1,315.67 per dollar in the official foreign exchange market on Thursday, helped by stronger dollar liquidity. External reserves also rose to an 18-year high of $53.99 billion.
Official market gains
Data from the Central Bank of Nigeria shows the naira appreciated by N11.02, or 0.84 percent, from the N1,326.69 quoted at the Nigerian Foreign Exchange Market on Wednesday. In the parallel market, the naira held steady at N1,400 per dollar.
The gap between the official and parallel market rates widened to 6.46 percent from 4.63 percent previously. Total turnover in the interbank segment of the FX market surged 62.33 percent to $152.04 million on Thursday, up from $93.66 million on Wednesday. The number of deals also rose 45.71 percent, from 105 to 153.
Although NFEM deal and turnover figures for Thursday were not available at the time of reporting, activity had increased. Total turnover at the NFEM window rose 14.63 percent to $658.46 million on Wednesday from $574.42 million on Tuesday. Deals, however, dropped 10.66 percent to 310 from 347.
Reserves and remittances
Nigeria’s external reserves, which give the CBN firepower to defend the naira, kept rising to an 18-year high of $53.99 billion as of September 2, 2026. The naira appreciated by 1.5 percent in the NFEM during August, while market turnover rose to $14.68 billion, its highest level in five months, according to a report by FMDA.
Remittance inflows through International Money Transfer Operators reached $947 million in July 2026, the highest monthly inflow ever recorded through formal channels. That approaches the $1 billion monthly target set by CBN Governor Olayemi Cardoso. IMTO inflows hit $3.8 billion in the first seven months of 2026, up 50.2 percent from the same period in 2025.
The stronger inflows reflect CBN reforms aimed at making formal remittance channels more competitive. These include changes to the IMTO regulatory framework, the introduction of the Non-Resident Bank Verification Number, and closer engagement with IMTOs, banks and diaspora communities. Recently, the CBN also strengthened requirements for remittance transactions to be routed through designated settlement accounts with authorised dealer banks.
“When we set a clear ambition to reach $1 billion a month in remittance inflows through formal channels nearly two years ago, some people thought we were dreaming. At $947 million in July, we are now approaching that milestone,” Cardoso said.
He added: “July is an important marker, but our focus is not on a single month. It is on creating the conditions for sustained growth in formal remittances. We expect to keep seeing improvement and believe Nigeria can reach and ultimately sustain monthly inflows above $1 billion.”
Oil, liquidity and market pressure
Higher oil prices are also supporting the external sector. Average Brent crude prices rose 5 percent to $87.26 per barrel in August, although prices moved above $90 per barrel at points amid geopolitical tensions in the Middle East.
System liquidity rose 56.17 percent to N4.65 trillion in August from N2.98 trillion in July, driven by maturing securities, FAAC allocations and other repayments. That more than offset the CBN’s liquidity mop-up operations.
Still, the naira’s strength in the official market is increasingly diverging from the parallel market. The premium between the two widened further in August. The naira gained 1.5 percent in NFEM during the month, compared with only 0.06 percent in the parallel market.
Analysts link the widening premium partly to possible pre-election foreign exchange demand pressures, as increased political activity typically raises dollar demand. Dollarisation of real estate transactions may also sustain structural demand for foreign exchange, particularly as uncertainties around Capital Gains Tax encourage some sellers to price assets in dollars.
What it means for the naira
Stronger formal remittances, higher reserves, improved market turnover and increased dollar liquidity are giving the naira a firmer foundation. The CBN’s challenge now is to ensure that improving foreign exchange liquidity translates into a durable strengthening of the naira without creating excessive domestic liquidity that could undermine monetary stability.