T he Naira extended its upward trend against the U.S. dollar in the official foreign exchange market on Wednesday, following the Eid-el-Fitr holidays.
According to Central Bank of Nigeria (CBN) data, the naira appreciated to N1,531.25 per dollar, improving from N1,536.82 recorded last Friday—marking a daily gain of N5.57 per dollar.
Black Market Decline
However, in the parallel (black) market, the currency weakened, falling to N1,555 per dollar from N1,550 before the holidays, reflecting demand pressure outside the official exchange system.
Rising Foreign Reserves Boost Market Confidence
The fluctuations in the forex market follow a positive report from the CBN, which revealed that Nigeria’s Net Foreign Exchange Reserves (NFER) had surged to $23.11 billion, its highest level in over three years.
The increase in foreign reserves is expected to reinforce confidence in Nigeria’s external financial position and support CBN’s monetary policy efforts aimed at stabilizing the naira.
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