Nigerian naira strengthens modestly against the dollar, official rate improves to N1,370.56
The official exchange rate for the Nigerian naira rose to N1,370.56 per U.S. dollar on Wednesday, marking the first appreciation since the previous week. The Central Bank of Nigeria’s data show the currency strengthened by about N5.1 from Tuesday’s rate of N1,375.62.
On the parallel market, the naira held steady at N1,395 per dollar, unchanged from the prior session. The move follows a two‑day slide in the official market, where the naira had weakened against the greenback.
The shift arrives as Nigeria’s foreign‑exchange reserves increased to $48.48 billion as of May 12, according to the central bank. The higher reserve balance provides additional backing for the naira and supports the recent policy measures aimed at stabilising the currency.
Economists note that the modest appreciation reflects a combination of improved reserve levels and ongoing interventions by the Central Bank, which has been managing bid‑ask spreads and tightening liquidity in the foreign‑exchange market. While the gain is modest, it signals a potential reversal of the recent depreciation trend that had pressured importers and heightened inflationary pressures.
Market participants will be watching upcoming data releases, including trade balances and oil export figures, for further clues on the trajectory of the naira. Continued reserve accumulation and disciplined monetary policy could sustain the current level, but any external shock—such as a sharp drop in crude prices—could reverse the gains.
For now, the naira’s modest rebound offers a brief reprieve for businesses and consumers who have been coping with a weaker currency over the past months. The central bank’s next moves, alongside broader economic developments, will determine whether the appreciation is a short‑term correction or the start of a more sustained recovery.
