Market watchers noted that while the change at the official window was minimal, it came at a time when the black-market exchange rate remained steady at ₦1,550 per dollar, showing no movement from the previous day.
The slight strengthening of the naira coincided with encouraging news on the reserves front. Nigeria’s external reserves climbed to $41.05 billion as of August 20, 2025, an improvement from the $38.25 billion reported at the end of July. Analysts suggest that the reserves build-up could provide the apex bank with greater confidence to intervene in the market when necessary.
Although the gain may be modest, currency traders and financial analysts are watching closely to see whether this signals a potential turning point or simply a temporary breather in the naira’s volatility. The broader outlook will likely depend on the CBN’s policy stance, the trajectory of foreign inflows, and ongoing efforts to stabilize the foreign exchange system.
