The naira closed the week at N1,357.61 per dollar at the official foreign exchange market, gaining N8.08 week-on-week, as Nigeria's external reserves surged to $52.25 billion, the highest in 17 years. The Central Bank of Nigeria (CBN) also announced new financial market reforms, including expanded access to OMO securities for non-bank investors.
Naira Appreciates in Official Market, Stable in Parallel Market
According to CBN data, the naira appreciated by N8.08 against the dollar over the course of the week, closing at N1,357.61 per dollar at the Nigerian Foreign Exchange Market (NFEM) on Friday. This compares with a closing rate of N1,365.69 per dollar the previous week. On a day-to-day basis, the currency edged up by N0.04 from N1,357.65 recorded on Thursday.
In the parallel market, the dollar traded at around N1,420, leaving a gap of 4.64% between the unofficial and official rates. That spread narrowed slightly from the 4.71% recorded in the prior period, suggesting both market segments remained broadly aligned.
Market Activity Rises, Turnover Increases
Trading volumes in the interbank market picked up on Friday, with total turnover rising 9.12% week-on-week to $1 billion, up from $919 million on the same day the previous week. The number of deals also jumped, from 639 on Thursday to 761 on Friday, a 19.09% increase, BusinessDay reports.
However, cumulative NFEM turnover through Thursday dipped slightly by 2.23% to $3.95 billion compared with $4.04 billion in the equivalent period a week earlier. Despite that marginal drop in value, the number of transactions rose 3.17% to 1,791 from 1,736, pointing to continued activity in the market.
External Reserves Hit 17-Year High
The reserve figure of $52.25 billion reflects a 28.32% jump from the $40.72 billion posted during the same period in 2024, giving the apex bank a stronger buffer to manage FX liquidity and service the country's external obligations.
The CBN also announced a set of market reforms alongside the reserve milestone. These include easing restrictions on Deposit Money Banks' access to the discount window and Standing Lending Facility, resuming tenored repo operations with maturities between four and 90 days, and widening participation in the Open Market Operations (OMO) market to cover non-bank financial institutions, corporates, and retail investors.
Other Currency Exchange Rates and Customs Rate Adjustment
The CBN also provided the updated currency exchange rates below: CFA: N2.39, Yuan/Renminbi: N201.37, Danish Krona: N210.21, Euro: N1,571.70, Yen: N8.54, Riyal: N361.59, South African Rand: N83.85, Swiss Franc: N1,673.58, Pounds Sterling: N1,840.10, SDR: N1,855.85, WAUA: N1,853.65, and UAE Dirham: N369.64.
Legit.ng had earlier reported that the CBN adjusted the exchange rate used by the Nigeria Customs Service to value imported goods cleared through the country's ports and airports. The latest figure represents a marginal increase compared with the previous rate and reflects recent movements in the official foreign exchange market.
