The Nigerian naira strengthened further against the US dollar on Friday, closing at ₦1,342.5/$ after opening the week at ₦1,358/$. The currency’s appreciation was driven by improving global market sentiment and a weakening dollar, which benefited emerging market currencies.
According to data from the Central Bank of Nigeria, the naira gained ground steadily throughout the week, reaching ₦1,348/$ on Tuesday, ₦1,341.99/$ on Wednesday, and ₦1,341.01/$ on Thursday before settling at Friday’s close. This marks a notable recovery from the previous week’s low of ₦1,389/$, reflecting renewed confidence in the local currency.
The appreciation comes despite a slight decline in Nigeria’s external reserves, which fell to $48.65 billion as of April 16, 2026, down from $48.72 billion at the start of the week and $48.81 billion at the close of the previous week.
The rally in the naira was supported by weakness in the US dollar, which saw its index fall by 0.49% to 97.73—its lowest level since late February. Easing geopolitical tensions in the Middle East, particularly assurances that the Strait of Hormuz would remain open for global shipping, reduced demand for safe-haven assets and boosted emerging market currencies. The dollar index recorded a two-week decline of about 2.5%, its sharpest drop in a year.
Other major currencies also gained against the dollar, with the euro rising 2.7% during the week and the Japanese yen strengthening. The improved global sentiment provided additional support for the naira’s upward movement.
This development offers some relief for Nigeria’s economy, which has faced persistent currency pressures amid fluctuating oil revenues and foreign exchange supply challenges. The strengthening naira may help moderate inflationary pressures and improve investor confidence in the local market.
