The naira appreciated on a week-on-week basis to close at N1,391 to the dollar in the official foreign exchange market on Friday, supported by improved liquidity and a rise in Nigeria’s external reserves.
Data obtained from the Central Bank of Nigeria showed that the local currency recorded a steady recovery during the trading week, reversing losses from the previous period.
The naira closed at N1,391/$ on Friday, slightly weaker than N1,385/$ recorded on Thursday, but significantly stronger than earlier levels in the week. During Friday’s session, the currency traded between N1,381/$ and N1,392/$, with an average rate of N1,387.12/$.
Earlier in the week, the naira exchanged at N1,416.5/$ on Monday, N1,409.5/$ on Tuesday, and N1,394/$ on Wednesday.
On a week-on-week basis, the naira appreciated from N1,421.9/$ recorded at the close of the previous week.
The gains were also reflected in the parallel market, where the naira is strengthened to N1,453/$ on Friday from N1,490/$ on Thursday.
Findings showed that the gap between the official and parallel market rates narrowed significantly by the end of the week, easing pressure on the local currency.
Meanwhile, Nigeria’s external reserves rose to $46.18bn during the week, providing additional support for the naira.
The reserves recently crossed the $46bn mark for the first time in nearly eight years, according to data from the apex bank.
The Central Bank of Nigeria has projected that the country’s external reserves will continue to rise in 2026, driven by stronger foreign inflows and ongoing reforms in the foreign exchange market.
The CBN also said improved transparency and efficiency in the FX market would help narrow the gap between official and parallel market rates.
