The naira strengthened for the third consecutive day against the US dollar at the official foreign exchange market on Wednesday, gaining N0.03 to close at N1,343.74 per dollar, up from N1,343.76 the previous day, according to data from the Central Bank of Nigeria.
The latest movement builds on earlier gains earlier this week, with the local currency firming by N12.44 over the past three trading sessions. The appreciation reflects continued stability in official forex windows, despite persistent pressure in parallel markets.
At the parallel market, the naira remained unchanged at N1,410 per dollar on Wednesday, matching Tuesday’s rate. The divergence between official and black market rates continues to highlight the challenges of currency unification and liquidity management in Nigeria’s forex market.
The development comes amid a further decline in Nigeria’s external reserves, which dropped to $48.69 billion on Tuesday, April 14, 2025. While the reserve level remains above the psychologically significant $40 billion mark, analysts say sustained pressure on reserves could limit the central bank’s ability to defend the naira in the medium term.
The CBN has maintained a cautious approach to forex management, focusing on incremental market reforms and liquidity injections to stabilise the naira. However, persistent dollar demand from importers, foreign portfolio investors, and other sectors continues to test the resilience of the local currency.
Observers note that while the three-day appreciation offers short-term relief, long-term stability will depend on structural reforms, improved dollar inflows, and sustained confidence in Nigeria’s macroeconomic environment.
The currency’s performance will be closely watched in the coming days, especially as global oil prices and foreign investment flows remain key determinants of Nigeria’s forex dynamics.
