The Nigerian naira appreciated against the United States dollar at the official foreign exchange window on Thursday, reversing the previous session’s decline, according to data released by the Central Bank of Nigeria.
The local currency strengthened to N1,347.63 per dollar, up from N1,350.41 recorded on Wednesday, representing a gain of N2.78 on a day-to-day basis. The improvement at the Nigerian Autonomous Foreign Exchange Market (NAFEM) signals renewed liquidity or shifting demand dynamics in the official segment.
At the parallel market, the naira held steady at N1,405 to the dollar, unchanged from the rate quoted the previous day. The stability in the informal segment contrasts with the official window’s volatility, maintaining a spread of approximately N57.37 between the two markets.
The currency’s recovery coincides with a rise in the country’s external reserves, which climbed to $52.66 billion, according to the latest central bank figures. The reserve accretion provides a buffer for import cover and supports the monetary authority’s intervention capacity in the foreign exchange market.
Wednesday’s session had seen the naira weaken at the official market, underscoring the persistent day-to-day fluctuations that have characterised trading since the unification of exchange rate windows last year. Market participants continue to monitor oil receipts, diaspora inflows, and portfolio investment trends for directional cues.
Analysts note that while daily movements reflect transient supply-demand imbalances, the reserves trajectory and the central bank’s policy posture remain the primary anchors for medium-term stability. The Monetary Policy Committee’s commitment to price stability and exchange rate convergence continues to guide market expectations.
The next focus for investors and policymakers will be the sustainability of reserve accretion amid global oil price uncertainty and the pace of foreign capital returning to domestic fixed-income instruments. Consistent inflows into the official window are essential to narrowing the premium between market segments and restoring confidence in price discovery.
