Naira’s Highest Two-Day Official Market Gain Nears N1300

The Nigerian naira recorded its strongest two-day appreciation against the US dollar in recent history at the official foreign exchange market, reaching N1,358.28 on Wednesday, according to Central Bank of Nigeria (CBN) data. This follows a rise from N1,372.91 on Tuesday, marking a single-day gain of N14.63.

The cumulative effect over Tuesday and Wednesday saw the local currency strengthen by a total of N32.08 at the regulated market. This sustained uptrend pushes the naira closer to the N1,300 per dollar threshold, a level last witnessed in March 2024. The daily gains follow a pattern of recent volatility, with Tuesday’s increase alone standing at N17.45.

In contrast, the parallel market rate remained significantly higher. Multiple Bureau De Change (BDC) operators in Abuja’s Wuse Zone 4 quoted a rate of N1,460 per dollar as of Wednesday, highlighting the persistent spread between official and unofficial exchange channels.

The naira’s recovery at the official window coincides with a continued surge in the country’s external reserves. Data indicates that gross reserves climbed to $46.70 billion by the end of February, marking an extended period of accretion. Higher foreign exchange reserves typically enhance the CBN’s capacity to defend the local currency and meet market demand, a factor analysts associate with the recent market stability.

The consistent appreciation at the official market suggests a potential normalization following a period of severe depreciation, though the wide gap with the black market rate underscores ongoing structural discrepancies in forex access. The central bank’s ongoing efforts to dollarize the economy, manage demand, and boost reserves through oil earnings and foreign investments remain critical to sustaining the naira’s gains.

The trajectory toward the N1,300 level represents a significant psychological and economic marker for Nigeria, with potential implications for inflation, import costs, and business planning. The durability of this trend will largely depend on the consistency of reserve growth and the effectiveness of monetary policy in unifying exchange rates across all segments.