Nigeria’s currency posted a modest gain against the U.S. dollar at the official foreign exchange window on Thursday, buoyed by a continued uptick in the country’s external reserves, which are now approaching the $40 billion mark.
According to data from the Central Bank of Nigeria (CBN), the naira appreciated to ₦1,533.73 per dollar on Thursday, a slight improvement from ₦1,534.44 recorded the previous day. The marginal gain of ₦0.70 reflects cautious optimism in the currency’s performance amid recent volatility in the foreign exchange market.
At the parallel market, however, the naira was unchanged, holding steady at ₦1,565 per dollar for the second consecutive day. The stability in street trading rates suggests a wait-and-see sentiment among traders, despite fluctuations at the official window.
The currency movement comes on the back of stronger external buffers. As of August 6, 2025, Nigeria’s external reserves stood at $39.99 billion, up from $39.81 billion on August 4. The rise in reserves — likely influenced by higher oil receipts, improved investor confidence, or controlled import demand — provides the CBN with a firmer footing to manage exchange rate volatility.
Over the past week, the naira has experienced a mixed performance, swinging between minor gains and losses against major currencies. Analysts attribute the back-and-forth to speculative demand, inconsistent liquidity inflows, and the broader uncertainty in the global currency market.
While Thursday’s appreciation is modest, it underscores the CBN’s ongoing efforts to stabilize the naira through monetary tightening, market reforms, and strategic reserve management. But sustained confidence will depend on deeper structural reforms, improved forex inflows, and continued transparency in the FX market.