Naira Rebounds to ₦1,363.5/$ as CBN Reserves Improve

The Nigerian naira recovered significantly this week, closing at ₦1,363.5 per US dollar in the official market on Friday, reclaiming ground after a sharp mid-week depreciation. The recovery follows a slide to ₦1,425 per dollar on Monday, which marked the currency’s weakest level since January 12, 2026.

According to data from the Central Bank of Nigeria (CBN), the local unit depreciated from ₦1,398 per dollar the previous Friday to hit the Monday low. However, subsequent trading sessions saw a steady appreciation. By Tuesday, the naira had strengthened to ₦1,390.5 per dollar, advancing further to ₦1,373.5 on Wednesday and ₦1,370 on Thursday. The cumulative gain exceeded ₦60 within four trading days, culminating in the Friday close.

Analysts attribute the early-week pressure to typical foreign exchange demand fluctuations. The subsequent rebound coincides with statements from monetary authorities highlighting improving fundamentals. The CBN recently reported that Nigeria’s net foreign exchange reserves rose to $34.80 billion by the end of 2025, a position the apex bank says enhances its capacity to support market stability.

CBN Governor Olayemi Cardoso emphasized that ongoing monetary and foreign exchange reforms are designed to bolster market confidence and improve liquidity. The rise in reserves is viewed as a critical buffer against external shocks and a signal of gradually strengthening external position.

The naira’s ability to recover from its weekly low suggests that recent policy measures may be yielding intended effects in reducing extreme volatility. However, sustained stability will depend on continued reserve accumulation, consistent policy implementation, and broader macroeconomic adjustments. Market watchers will closely monitor the CBN’s interventions as the currency navigates persistent structural demand pressures in the official foreign exchange market.