The naira ended the first trading week of May 2026 on a relatively stable note against the United States dollar, closing at N1,364/$ in the official foreign exchange market.
Data from the Central Bank of Nigeria (CBN) showed that the local currency maintained a positive trajectory for most of the week, reinforcing signs of improving stability in Nigeria’s foreign exchange market.
The latest performance extends the gains recorded at the end of April and reflects growing market confidence in the ongoing foreign exchange reforms introduced by the apex bank.
Throughout the week, the naira traded within a relatively narrow range, indicating reduced volatility and stronger market confidence.
The currency closed at N1,364/$ on Friday after trading at N1,358.01/$ on Thursday, N1,361/$ on Wednesday, and N1,362/$ on Tuesday. Monday’s official closing rate stood at N1,367.5/$.
Compared to the previous week, the naira recorded stronger levels across the board. It traded at N1,374/$ on Thursday of the preceding week, closed at N1,370.5/$ on Wednesday, N1,383/$ on Tuesday, and N1,369/$ on Monday.
The latest movement means the naira has appreciated by about N19 against the dollar over the past two weeks.
The recovery also reflects a rebound from the pressures experienced earlier in April. The naira traded at N1,389/$ on April 7, closed at N1,382.75/$ on April 2, and stood at N1,376/$ on April 1 before strengthening to N1,365/$ by April 9.
The currency had earlier closed April 2026 at N1,374/$, compared to N1,387/$ at the end of March, marking its first April gain since 2024.
The naira’s recent gains came despite a slight decline in Nigeria’s external reserves, which remain a key indicator of the CBN’s intervention capacity.
External reserves fell marginally to $48.33 billion as of May 7, 2026, from $48.34 billion recorded on May 4, representing a decline of about $14.8 million.
Market traders said the CBN has continued to restrict Bureau De Change (BDC) operators’ access to the official foreign exchange market, citing concerns over market control and past abuses.
Earlier reports by Nairametrics indicated that Nigeria’s external reserves declined by about $731 million within the first three weeks of April 2026.
Despite the recent dip, the CBN has maintained an optimistic outlook on the country’s reserve position. The apex bank projects that external reserves could rise to $51 billion by the end of 2026 as part of its broader macroeconomic stabilisation and confidence-restoration agenda.
Meanwhile, the CBN has scheduled its 305th Monetary Policy Committee (MPC) meeting for May 19–20, 2026, according to the official MPC calendar.
The meeting, which follows the February 2026 interest rate cut, is expected to determine the direction of the Monetary Policy Rate (MPR) as the apex bank seeks to sustain economic stability.
