Naira Ends Losing Streak as FX Liquidity Improves, Trades at N1,379/$ Amid Narrowing Market Gap

The Nigerian naira staged a mild recovery in the official foreign exchange market on Wednesday, breaking a week-long run of losses as improved liquidity conditions supported trading activity. The local currency showed signs of stabilisation, reflecting renewed confidence in the FX market.

Data from the Central Bank of Nigeria (CBN) revealed that the naira appreciated slightly by N1.65, closing at N1,379.46 per dollar, compared to N1,380.71 on Tuesday at the Nigerian Foreign Exchange Market (NFEM). This represents a marginal gain of 0.09 percent, signalling cautious optimism among market participants.

During intraday trading, the currency fluctuated between N1,365 and N1,386 per dollar, highlighting ongoing volatility but also increased activity within the official window. In the parallel market, commonly referred to as the black market, the naira remained steady at N1,400 per dollar, widening the gap between official and unofficial rates to N21.

Nigeria’s external reserves, which help support currency stability, continued to decline, falling 3.29 percent to $48.37 billion as of April 28, 2026, down from a recent peak of $50.02 billion in March. Despite this, CBN Governor Olayemi Cardoso assured that the decline is not alarming and remains within expected limits in a more flexible FX regime.

He explained that Nigeria now operates a more market-driven exchange system where investor flows play a larger role in determining currency value. According to him, the country’s reserves still provide strong import cover of about 13 months—well above international minimum standards—while short-term fluctuations should be seen as part of normal market adjustment rather than economic weakness.

source: business day