Nigeria’s foreign exchange market is showing fresh signs of stability as the naira continues to strengthen, with the gap between the official exchange rate and Bureau de Change rates narrowing to below two per cent. At the same time, the country’s foreign exchange reserves have climbed above $52.5 billion, reaching their highest level in 17 years as of July 17, 2026, according to the Central Bank of Nigeria.
The CBN said the strong reserve position was supported by sustained foreign exchange inflows, renewed investor confidence and increased participation across different asset classes in the Nigerian market. Speaking at a CBN financial fair in Lafia, Nasarawa State, the acting Director of Corporate Communications and Investor Relations, Hakama Sidi-Ali, said the development reflects the impact of reforms introduced under CBN Governor Olayemi Cardoso over the past 34 months.
Sidi-Ali highlighted several reforms, including greater transparency and unification in the foreign exchange market, the recapitalisation of the banking sector, the introduction of the non-resident Bank Verification Number for Nigerians abroad and the B-Match system for foreign exchange trading. She also pointed to the Nigeria Payments System Vision 2028 and other monetary measures designed to strengthen liquidity management, support the banking sector and reduce inflationary pressures.
The CBN also linked the improving economic picture to a gradual easing in inflation. According to the latest National Bureau of Statistics figures cited by the apex bank, headline inflation fell from 15.91 per cent in June to 15.43 per cent in July 2026, while food and core inflation also declined. Sidi-Ali said the combination of tighter monetary policy, improved foreign exchange market transparency and exchange-rate reforms was beginning to produce positive results, including greater stability in the naira and continued growth in foreign reserves.
Beyond foreign exchange and inflation, the CBN used the Lafia fair to promote digital payments and financial inclusion, urging Nigerians to embrace alternative payment channels such as POS, mobile money, QR payments, internet banking and instant payment platforms. Branch Controller, CBN Lafia, Njideka Nwabukwu, encouraged traders, entrepreneurs and young Nigerians to use digital financial services to make transactions faster and reduce dependence on cash. Participants, including students, NYSC members and other residents, subsequently pledged to adopt digital banking solutions as the country pushes toward a more inclusive and technology-driven financial system.
source: punch
