The Central Bank of Nigeria (CBN) has announced that the naira is gaining strength in the foreign exchange market as speculative trading continues to decline, with the country’s external reserves rising to $43 billion.
In a statement issued on Thursday, the apex bank attributed the steady appreciation of the local currency to its recent series of policy interventions aimed at stabilizing the forex market and curbing speculative activities among traders and investors.
According to the CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, the improved market sentiment reflects growing confidence in the bank’s reform measures, including enhanced transparency in FX transactions and tighter regulation of Bureau De Change (BDC) operations.
“The recent gains recorded by the naira are a result of sustained efforts to restore sanity in the FX market and discourage speculative behavior,” Sidi Ali said. “With reserves now standing at $43 billion, the outlook for the currency remains positive.”
The bank added that it will continue to pursue foreign exchange reforms aimed at achieving a market-driven rate while maintaining sufficient reserves to defend the naira against undue volatility.
Economic analysts have also linked the rise in reserves to increased inflows from crude oil exports and improved foreign investment sentiment following Nigeria’s ongoing fiscal and monetary stabilization programs.
Dr. Muda Yusuf, an economist and CEO of the Centre for the Promotion of Private Enterprise (CPPE), said the CBN’s recent policy direction appears to be yielding results.
“The combination of tighter monetary policy, increased oil receipts, and reduced speculation has contributed to the naira’s rebound,” Yusuf explained. “However, sustaining this momentum will require consistency in policy and stronger coordination between fiscal and monetary authorities.”
The naira has traded more steadily in both the official and parallel markets, with traders reporting reduced volatility compared to the sharp fluctuations witnessed earlier in the year.
The CBN reaffirmed its commitment to maintaining exchange rate stability while prioritizing economic growth and investor confidence.
