Naira strengthens to N1,500/\$ at official market as reserves rise to \$41.6bn, sustaining momentum for the second consecutive day

Naira Strengthens to N1,500/\$ at the Nigerian Foreign Exchange Market on Wednesday, marking the second straight day the local currency traded below the key threshold.

Also read: Dollar to Naira Black Market Rate Falls Today Sept 6

Data from the Central Bank of Nigeria showed that the naira fluctuated between N1,498/\$ and N1,507/\$ during the trading session, closing at N1,500.91/\$ at the official market.

This represents a continuation of the rally that began in early September, when the naira opened at N1,526.09/\$ and gradually strengthened.

The parallel market reflected a similar trend, with the naira appreciating to between N1,515/\$ and N1,517/\$ on Wednesday, up from N1,525/\$ the previous day.

Analysts linked the rally to stronger demand for the naira, reduced speculative trading, and rising foreign reserves. Nigeria’s external reserves climbed to \$41.59bn as of Tuesday, up \$25m from the previous day.

At over \$41bn, reserves now provide around 10 months of import cover, far above the three-month global benchmark.

Meristem Research, in its Macros and Market Insight report, noted that improved reserves, moderating inflation, increased crude oil production, and higher capital inflows had strengthened market stability.

“These factors boosted the country’s foreign exchange reserves, helping to sustain stability in the naira,” the report stated, adding that the stronger reserve position signals confidence to foreign investors and supports exchange rate management.

Analysts remain optimistic about the near-term outlook, citing sustained oil receipts and steady non-oil export growth.

However, they warn of potential risks from fluctuating global oil prices, security issues in oil-producing areas, and possible supply disruptions.

For businesses and households, a firmer naira offers relief on import costs and hopes of easing inflationary pressures.

Also read: Naira Strengthens Against Dollar to Six-Week High, Boosting Confidence

Economists say the Central Bank’s policies to unify exchange rates, attract foreign capital, and curb speculation are beginning to show results, but maintaining the momentum will require continued macroeconomic discipline.