The naira staged a modest recovery on Tuesday, strengthening slightly against the US dollar in the official foreign exchange market after a dip the previous day, buoyed by a continued build-up in Nigeria’s external reserves.
According to Central Bank of Nigeria data, the naira appreciated to N1,419.35 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday — a gain of N0.93 from Monday’s closing rate of N1,420.28. The small but positive movement signals a brief pause in recent downward pressure and reflects improved sentiment in the FX space.
The rebound coincided with a further increase in Nigeria’s foreign exchange reserves, which rose to $45.95 billion as of Tuesday, up from $45.90 billion recorded on Friday. The steady accumulation — driven largely by oil export proceeds, diaspora remittances, and selective portfolio inflows — continues to provide the CBN with a stronger buffer for market interventions and liquidity management.
Monday’s slight weakening had raised concerns about renewed demand pressures, particularly from corporate end-of-month obligations and seasonal FX needs. However, Tuesday’s uptick suggests that rising reserves are helping to anchor stability in the official window, even as the parallel market remains elevated around N1,485–N1,490 levels.
Market participants say the modest gain underscores the CBN’s ongoing efforts to maintain orderly FX conditions through strategic interventions and improved dollar supply visibility. While the improvement is small, it offers a measure of relief to importers, businesses, and households planning international transactions amid broader economic uncertainties.
Analysts caution that the naira’s path remains sensitive to global oil prices, foreign investor flows, and domestic demand dynamics. Sustained reserve growth and disciplined policy management will be key to building on this early-week resilience.
For now, Tuesday’s performance provides a glimpse of the naira’s capacity to push back against headwinds — a reminder that, even in volatile times, the currency can still show flashes of strength when external buffers strengthen. Traders will be watching closely to see if the momentum holds through the rest of the week.
