Naira gains N11.11 as dollar supply strengthens, reserves hit $52.657bn

The naira recorded another weekly gain against the US dollar, closing at N1,346.49 per dollar in the official market. That represents an N11.11 improvement over five trading days, data from the Central Bank of Nigeria showed.

The latest performance is a 0.83 per cent appreciation from the previous week, helped by improved dollar availability and stronger market liquidity. In the parallel market, the naira also gained marginally, closing at N1,400.61 per dollar amid relatively balanced demand and supply conditions.

What drove the gain

Foreign investors, exporters and non-bank corporates were among the sources of dollar liquidity that supported trading during the week. Their participation helped moderate pressure on the domestic currency.

At the same time, Nigeria’s gross external reserves increased by 0.65 per cent to $52.657bn, strengthening the country’s external liquidity position. The combination of rising reserves and improved FX supply has boosted expectations that the naira could maintain its recent stability in the coming weeks.

Oil prices add support

Nigeria also received support from the commodities market, where crude oil prices extended recent gains amid heightened geopolitical tensions. Brent crude increased 0.61 per cent to $94.39 per barrel, while WTI rose 0.23 per cent to $87.06 per barrel on Sunday at 6.07pm.

Stronger oil prices could help bolster Nigeria’s external position through higher export earnings. However, escalating tensions involving Iran and Russia could continue to create volatility in global crude prices.

Outlook for the naira

Some market participants are projecting an exchange rate of about N1,350 per dollar by the end of 2026, reflecting growing optimism around the currency’s outlook. With FX liquidity improving and external reserves strengthening, analysts say the naira is expected to remain relatively stable in the near term.

For Nigerian businesses and consumers, sustained naira stability could mean more predictable costs for imported goods and less pressure on domestic prices. But much will depend on global oil price movements and continued dollar inflows into the economy.