Naira Strengthens Against the Dollar Post-Eid, Central Bank Reports Highest FX Reserve in 3 Years

|By Adejumo Adekunle-

• The naira’s performance at the official market remains in contrast to the black market, where depreciation was observed.

• Analysts suggest the rise in foreign reserves could bolster the CBN’s market interventions and further support the naira.

The naira continued its upward trend against the dollar on Wednesday, following the Eid-el-Fitr holidays, signaling a positive shift in the nation’s currency market. According to data from the Central Bank of Nigeria (CBN), the naira gained N5.57, rising to N1,531.25 per dollar from N1,536.82 recorded last Friday.

This improvement underscores a steady recovery of the naira, marking a significant movement in the official foreign exchange market. However, the black market experienced a slight decline, with the naira depreciating to N1,555 per dollar from N1,550 before the Eid-el-Fitr celebrations.

In a further sign of positive momentum, the CBN also reported a surge in the country’s Net Foreign Exchange Reserve (NFER), which now stands at $23.11 billion—its highest level in more than three years. This increase is seen as a reassuring signal of growing financial stability and economic strength.

The CBN’s efforts to stabilize the naira seem to be bearing fruit, with the foreign exchange reserve providing more room for sustained economic interventions in the coming months.