Nigeria’s local currency capped off the week on a positive note, appreciating by N5.75 to close at N1,358.25 per US dollar on Friday at the Nigerian Foreign Exchange Market (NFEM), according to official Central Bank of Nigeria (CBN) data.
The weekend rally reflects a 0.42% week-on-week gain from the previous Friday’s closing rate of N1,364/$, backed by a continued expansion in the nation’s external buffer zone.
Key takeaways
- Weekly Rebound: The Naira rebounded from a mid-week low of N1,365/$ on Tuesday, posting three consecutive sessions of gains to settle at N1,358.25/$.
- Foreign Reserves Boost: Nigeria’s gross external reserves expanded by $201.86 million (0.39%) week-on-week, climbing from $52.06 billion to $52.26 billion.
- Market Activity: Interbank FX market turnover stabilized on Friday with 137 completed deals valued at $119.59 million.
Mid-week volatility and recovery
Trading throughout the week was marked by shifting market liquidity and sharp fluctuations in overall market volume.
The market opened Monday with the Naira at N1,361.50/$, before pressure dragged the local unit down to N1,365/$ on Tuesday—a session where turnover plunged to an 11-week low of $185 million across just 186 total deals.
Liquidity surged dramatically on Wednesday as turnover climbed to $607.47 million across 409 deals, triggering a rally that brought the exchange rate down to N1,360.15/$. The currency maintained its upward trajectory into Thursday, closing at N1,356.50/$ on $387.09 million in total trades.
| Trading day | Closing rate (USD/NGN) | Market highlights |
| Monday | N1,361.50 | Opening trading rate |
| Tuesday | N1,365.00 | Turnover hit 11-week low ($185M) |
| Wednesday | N1,360.15 | Market liquidity jumped ($607.47M) |
| Thursday | N1,356.50 | Continued momentum across 283 deals |
| Friday | N1,358.25 | Weighted average rate stood at N1,357.61 |
During Friday’s session, the Naira traded within a narrow band between an intra-day high of N1,360/$ and a low of N1,356.50/$, resulting in a simple average rate of N1,357.72/$ and a weighted average of N1,357.61/$.
Stronger reserve cushion underpins stability
The currency’s performance remains reinforced by Nigeria’s growing external reserves, which now stand securely above the $52 billion threshold.
The $52.26 billion reserve level represents an ongoing milestone, well ahead of the CBN’s initial full-year target of $51.04 billion projected in late 2025. Supported by robust crude oil earnings, sustained foreign exchange reforms, and steady foreign capital inflows, Nigeria’s reserves have rebounded substantially from the $45 billion level recorded in 2025, providing the central bank with significant firepower to manage currency volatility within a tight trading range.
