The Nigerian naira strengthened further against the United States dollar on Thursday, closing below the N1,360/$ mark for the first time in four weeks amid rising external reserves and ongoing reforms in the foreign exchange market.
Data from the Central Bank of Nigeria (CBN) showed the naira closed at N1,359.75/$ on June 4, 2026, compared to N1,360.00/$ recorded the previous day.
The appreciation marks the first time the local currency has traded below the N1,360/$ threshold since May 7, reinforcing signs of improving stability in Nigeria’s foreign exchange market.
CBN figures indicated that the naira maintained a relatively steady performance throughout Thursday’s trading session, supported by improved foreign exchange liquidity and healthy market activity. The currency traded within a narrow band of N1,356.75/$ and N1,361.50/$, while the day’s simple average exchange rate stood at N1,359.14/$.
Interbank foreign exchange turnover reached $128.17 million, with 121 deals executed among participating financial institutions. Analysts say the relatively tight trading range reflects reduced volatility and a better balance between foreign exchange demand and supply in the official market.
The naira’s recent gains coincide with a steady rise in Nigeria’s external reserves and the implementation of reforms designed to improve transparency, liquidity, and efficiency in the FX market.
Nigeria’s gross external reserves climbed to $49.96 billion as of June 3, 2026, up by more than $155 million from $49.80 billion recorded a day earlier. The reserves had already increased by approximately $1.22 billion during May 2026, according to CBN data.
As part of broader market reforms, the apex bank recently introduced the Fourth Edition of its Foreign Exchange Manual, aimed at strengthening market governance and streamlining operations. Among the key changes is the increase in the allowable advance payment for imports from 15 per cent to 30 per cent, a measure expected to facilitate trade transactions and improve access to foreign exchange for businesses.
Market analysts believe the reforms, alongside stronger foreign exchange inflows from crude oil exports, diaspora remittances, and portfolio investments, have helped boost investor confidence and support the naira.
The currency’s return below the N1,360/$ level is being viewed as another indication that recent policy measures are beginning to yield positive results.
For comparison, the naira closed May 2026 at N1,372/$ in the official market, a significant improvement from N1,585.50/$ recorded in May 2025.
Over the past year, the CBN has intensified efforts to deepen liquidity, enhance transparency, and strengthen confidence in the foreign exchange market, while maintaining a tight monetary policy stance to support exchange rate stability and curb inflationary pressures.
