The Nigerian naira maintained its relatively stable performance across the foreign exchange (FX) market on Tuesday, supported by a continued build-up in the nation’s external reserves.
According to data from the Central Bank of Nigeria (CBN), the naira recorded a marginal depreciation of N1.42 (or 0.09%) in the official Nigerian Autonomous Foreign Exchange Market (NAFEM), closing with the dollar quoted at N1,438.71 compared to N1,437.29 on Monday.
In the parallel (black) market, the local currency showed appreciation, strengthening by N5 (or 0.3%) to close at N1,455 per dollar, better than the N1,460 recorded the previous day.
Reserves Bolster CBN's Capacity
The stability is strongly correlated with the consistent growth in Nigeria’s external buffers. The nation's external reserves reached $43.36 billion as of November 10, 2025, according to the latest CBN figures.
A report by FSDH Merchant Bank highlighted that the reserves have steadily grown from $37.8 billion in June to $42.9 billion in October 2025, reflecting positive trends in oil receipts, multilateral inflows, and portfolio investments.
FSDH analysts noted that this reserves build-up enhances the CBN’s capacity to stabilize the FX market and signals stronger external buffers. However, sustaining this positive trajectory will rely heavily on increased export diversification, maintaining fiscal discipline, and navigating global risk developments.
Improved Liquidity Reflects in Card Limits
The improved liquidity conditions in the FX market have also been reflected in banking operations. Guaranty Trust Bank (GTBank) recently increased the dollar spending limit on its naira cards by 500%, moving from $1,000 to $6,000 per quarter.
GTBank’s international payment rate on its naira card closed on Tuesday at N1,444 per dollar, marginally up from N1,442 on Monday.
FSDH analysts credited the naira’s recent stability to improved market transparency, stronger reserves, and rising FX inflows, noting that the currency's strengthening to around N1,460 in October reflected renewed confidence as liquidity improved and speculative demand receded.
While short-term risks have moderated, analysts conclude that maintaining stability requires disciplined monetary policy operations and consistent communication from the CBN to anchor market expectations. They project relative stability for the naira in the fourth quarter of 2025, with potential for moderate appreciation if the current inflow trend is sustained.