Naira Strengthens Against Dollar as External Reserves Rise

By Diafa Doubra,

The Nigerian naira recorded a modest gain against the United States dollar on Tuesday, buoyed by improved liquidity in the foreign exchange market and a rise in the country’s external reserves.

Data from the FMDQ Exchange showed the naira trading at an average of ₦1,482 per dollar, an appreciation compared to the previous day’s close. Analysts attribute the improvement to increased dollar inflows from crude oil sales, foreign portfolio investments, and remittances.

The Central Bank of Nigeria (CBN) also confirmed that external reserves have grown steadily in recent weeks, providing greater confidence in the apex bank’s ability to meet forex demands. This development has reduced panic buying in the market and eased pressure on the naira.

Economic experts welcomed the news but warned that sustaining the currency’s strength will depend on consistent policy measures, increased local production, and transparency in the management of foreign reserves.

The CBN assured Nigerians that it remains committed to stabilising the exchange rate and tackling inflationary pressures, which have been a major concern for households and businesses.