The Nigerian naira strengthened to its highest level in over a month on Tuesday, closing at N1,345 per U.S. dollar in the official foreign exchange market. This marks the currency’s best performance since February 18, when it traded at N1,340/$.
Data from the Central Bank of Nigeria (CBN) showed the naira traded within a narrow and stable band during the session, ranging from N1,340 to N1,355 per dollar. The simple average rate for the day was N1,344.55/$.
This appreciation occurs against the backdrop of a modest decline in Nigeria’s external reserves. Gross reserves fell to $49.86 billion, down from $50.45 billion recorded in February. External reserves are a critical measure of the country’s ability to defend the currency and meet foreign exchange obligations.
Globally, the U.S. dollar index stood at 99.56, recovering slightly from a two-day dip. Earlier in the week, the dollar had hit a 10-month high as investors sought safety amid ongoing Middle East tensions. Other major currencies showed mixed movements: the euro was flat at $1.1538, the Japanese yen strengthened to 158.91 per dollar, and the British pound held at $1.3353.
Markets are now focused on a wave of central bank decisions. The U.S. Federal Reserve is scheduled to announce its policy on Wednesday, followed by the European Central Bank, Bank of England, and Bank of Japan. Broad expectations are for most institutions to maintain current interest rates.
The naira’s gain provides temporary relief in Nigeria’s volatile forex market, though sustained appreciation will depend on further inflows and reserve stability. The currency’s performance in coming weeks will likely be influenced by both local liquidity conditions and the outcomes of the major central bank meetings.
This report is based on CBN data and market observations, with additional global context. It was first published by Channels Television.
