Naira Appreciates to ₦1,465/$ as Foreign Reserves Rise to $42.7bn
The naira opened the new trading week on a positive note, appreciating by ₦10 against the United States dollar on Monday, buoyed by an increase in Nigeria’s external reserves.
Data from the Nigerian Foreign Exchange Market (NFEM) indicated that the local currency strengthened to ₦1,465 per dollar, compared to ₦1,475 recorded at the close of trading on Friday.
The development marks a 1.37 per cent week-on-week gain for the naira, reversing the mild depreciation it suffered at the end of last week.
The rebound coincided with a steady rise in Nigeria’s external reserves, which climbed to $42.696 billion, reflecting improved foreign inflows and stronger confidence in the country’s macroeconomic outlook.
Analysts attribute the uptick to a combination of increased oil receipts, better remittance flows, and improved investor sentiment following recent monetary policy interventions by the Central Bank of Nigeria (CBN).
Market watchers say the CBN’s continued efforts to stabilize the exchange rate through market reforms and liquidity management have started yielding results, leading to improved supply in the official market.
“The appreciation of the naira and the steady rise in reserves are positive signals that the foreign exchange market is gradually regaining balance,” said a Lagos-based economist. “Sustaining this trend will depend on consistent policy measures and maintaining confidence among investors and exporters.”
The naira’s performance in the coming days will be closely watched as traders assess the impact of ongoing fiscal and monetary adjustments aimed at achieving long-term exchange rate stability.
