The Nigerian naira posted a notable gain against the US dollar on Friday, closing at N1,355.25 in the official foreign exchange market its strongest level in recent sessions despite a continued decline in the country’s external reserves.
According to data published on the Central Bank of Nigeria (CBN) website on Saturday, April 11, 2026, the local currency appreciated from N1,369 per dollar the previous day, reflecting a steady improvement throughout the shortened trading week following the Easter break.
The naira traded at N1,389 on Tuesday after the holiday, strengthened to N1,369 on Wednesday, and further to N1,365 on Thursday before settling at N1,355.25 on Friday. This performance marks a reversal from the post-Easter depreciation trend observed in April 2025, when the currency closed at N1,606 per dollar.
The recent appreciation aligns with a broader weakening of the US dollar globally. The greenback is on track for its largest weekly drop since January, as investors unwind safe-haven positions following the announcement of a ceasefire between the United States and Iran. Optimism that the truce will hold and allow oil shipments to resume through the Strait of Hormuz has reduced demand for the dollar.
However, uncertainty lingers. Shipping activity through the critical chokepoint remains below normal levels, and any breakdown in diplomatic efforts could quickly reverse the dollar’s decline.
Nigeria’s external reserves have continued to face pressure, falling to $48.85 billion as of April 9, 2026, from $49.18 billion at the start of the month. This decline follows a period of strong accumulation earlier in the year, when reserves reached a 13-year high of $50.45 billion in February.
Despite the reserve drawdown, the CBN has projected that external reserves will rise to $51.04 billion by the end of 2026, supported by higher oil earnings, sovereign bond issuances, and increased diaspora remittances.
The naira’s resilience this week suggests that easing geopolitical tensions and improving global sentiment are providing short-term support for the currency. However, analysts caution that sustained stability will depend on the durability of the ceasefire, trends in global oil prices, and the CBN’s ability to manage liquidity and defend the exchange rate.
As the US economic calendar remains busy and diplomatic talks between Washington and Tehran continue in Islamabad, currency traders will be watching closely for any developments that could influence both the dollar’s strength and the naira’s trajectory in the coming days.
For now, the naira appears to be benefiting from a temporary lull in geopolitical risk, even as underlying pressures on reserves persist.
