The Nigerian naira staged an impressive recovery on Thursday, November 13, 2025, reversing several days of depreciation against the US dollar in both official and parallel market windows. The local currency appreciated to N1441 per dollar, providing much-needed relief to businesses and individuals affected by recent currency volatility.
External Reserves Boost Drives Naira Recovery
Market analysts directly link the naira's rebound to significant growth in Nigeria's external reserves, which climbed to $43.427 billion following new accretions. The steady buildup of foreign exchange buffers has strengthened investor confidence while reducing speculative activities that typically fuel market instability.
Despite the Central Bank of Nigeria slowing its direct intervention in the forex market, the regulator maintains tight control over foreign exchange supply. This gradual approach aims to help the naira find a more sustainable value rather than relying exclusively on heavy central bank intervention.
Improved Market Sentiment and Declining Blocked Funds
Fresh data from the CBN reveals a consistent reduction in Nigeria's blocked funds—reserves previously inaccessible due to capital controls and FX shortages. The amount has dropped from $615.478 million to $587.209 million since the beginning of the month, signaling a more flexible forex regime.
This development allows airlines and other foreign companies to repatriate funds more easily, addressing a critical concern that had persisted through most of 2023 when blocked funds remained above the one-billion-dollar mark.
Detailed Market Performance Metrics
The naira's appreciation manifested differently across market segments. In the official window, the currency gained 0.11 percent to settle at 1441.44 per dollar. The parallel market demonstrated even stronger performance with a 0.34 percent jump to 1455 per dollar, indicating improved liquidity and rising demand for the local currency.
Notably, the naira reached an intraday high of 1439.35 per dollar, outperforming the previous day's peak of N1444.85. Some transactions even closed at N1437 per dollar, reflecting enhanced foreign exchange availability within the system.
The current combination of rising reserves, easing dollar demand, and clearer foreign exchange policy direction is helping the naira achieve stability after months of significant fluctuations. While global market shocks remain potential risks, the prevailing trend suggests Nigeria is moving toward a more balanced and less volatile currency environment.
