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Dollar hits four-year low as naira and global currencies rise

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Dollar hits four-year low

US dollar hits four-year low, prompting naira and other currencies to rise while gold surges, reflecting global investor shift amid economic uncertainty

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The US dollar has fallen to its lowest level in four years, boosting the naira and several other global currencies as investors move into safe-haven assets such as gold, the euro, and the Swiss franc.

Also read: CSOs Demand N4 Trillion Debt Payment to Nigerian Contractors

According to The Guardian UK, the dollar dropped 1.3% against a basket of major currencies on Tuesday, extending its decline to a fourth consecutive day, before slipping a further 0.2% on Wednesday, its weakest level since February 2022.

Over the past year, the dollar has lost around 10% of its value.

President Donald Trump dismissed concerns over the slide, describing the situation as “great” and citing strong business activity as a sign of economic resilience.

Market strategist Steve Sosnick of Interactive Brokers explained that a weaker dollar is a double-edged sword.

While it benefits multinational firms earning in foreign currencies, it raises import costs and could stoke inflationary pressures.

The weakening dollar lifted rival currencies to multi-year highs. The Swiss franc surged to its strongest level against the dollar in over a decade, gaining around 3% this year following a 14% rise in 2025.

The euro climbed to $1.20, marking its largest weekly gain since April last year and a 13% increase for 2025 — its best annual performance since 2017.

Gold also continued its rally, hitting record highs above $5,200 an ounce, nearly 90% higher since Trump’s second inauguration as investors sought protection from political and economic uncertainty.

In Nigeria, the naira strengthened against the dollar in the official market, rising to N1,400.28/$1 on Wednesday, up 74 kobo from N1,401.22/$1 in the previous session, according to Central Bank of Nigeria (CBN) data.

However, the naira fell against the pound and euro, closing at N1,929.99/£1 and N1,675.53/€1, respectively.

At the parallel market, the naira remained stable at N1,480/$1, while GTBank forex desks quoted it at N1,426/$1.

Data from the CBN also show that Nigeria’s gross foreign reserves reached $46.012 billion as of January 22, 2026, the highest in about eight years and up roughly $510 million since the start of the year.

Also read: CSOs Demand N4 Trillion Debt Payment to Nigerian Contractors

The last time reserves were at this level was August 2018, highlighting a significant improvement in the country’s external position.

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Theparkpay Technologies Limited Strengthens Global Payments Infrastructure with UK FCA Licence

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Theparkpay

Theparkpay UK FCA licence strengthens the fintech’s global payments infrastructure as it expands regulated cross-border services across key markets (more…)

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Wale Tinubu Says Nigeria’s Creativity Can Drive Exports

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Wale Tinubu

Wale Tinubu says Nigeria’s creativity can become a major export industry, creating jobs, attracting foreign exchange and building sustainable businesses (more…)

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TotalEnergies, AMNI Approve $800m Ima Gas Project

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TotalEnergies and Nigerian independent energy company AMNI International have taken the Final Investment Decision on the $800 million Ima Gas Project, more than five decades after the gas field was discovered.

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The Ima Gas Project, located in shallow waters across Oil Mining Leases 112 and 117 near Bonny Island, Rivers State, is expected to begin production in 2028 and reach a plateau of 350 million cubic feet of gas per day.

The development is expected to play a major role in supplying feed gas to Nigeria LNG, with the Ima field projected to provide about one-third of the additional gas required for the ongoing Train 7 expansion.

Train 7 is expected to increase Nigeria LNG’s liquefaction capacity from 22 million tonnes per annum to 30 million tonnes per annum, strengthening Nigeria’s capacity to process and export liquefied natural gas.

The Ima field was discovered in 1973 but remained undeveloped for more than 50 years. The Final Investment Decision provides the commercial and financial basis for finally developing the long-dormant resource.

Under the development plan, TotalEnergies will operate the project with a 40 per cent interest, while AMNI will hold the remaining 60 per cent.

The field will be developed using a single offshore platform connected to Nigeria LNG’s facility on Bonny Island through a 22-kilometre pipeline.

TotalEnergies said its investment in the project is more than $600 million, while the Federal Government described the overall Final Investment Decision as an $800 million investment.

At the FID signing ceremony in Abuja, TotalEnergies Exploration and Production Nigeria Managing Director, Mathieu Bouyer, described the decision as the culmination of a development process that had stretched across several decades.

He said the project reflected increased confidence in Nigeria’s investment environment and highlighted reforms targeting the non-associated gas sector as part of the factors that helped make the development commercially viable.

President Bola Tinubu welcomed the investment, saying the project demonstrated the potential of reforms introduced to reduce the cost and time required to develop oil and gas projects.

The President said the government had introduced incentives aimed specifically at unlocking onshore and shallow-water gas projects that had remained undeveloped for years.

He said the Ima development would create opportunities for Nigerian businesses, engineers, technicians and contractors, while generating jobs, economic activity in host communities and additional export earnings.

The project is also expected to have a strong Nigerian content component. TotalEnergies said all key contractors for the development would be Nigerian companies, while about 60 per cent of the workforce during the development phase is expected to come from host communities.

The development will incorporate measures aimed at reducing emissions. TotalEnergies said the platform would receive electricity from shore, operate without routine flaring and use permanent methane detection and monitoring systems.

The Federal Government said the project is part of efforts to turn Nigeria’s large natural gas reserves into productive assets capable of supporting industrialisation, energy supply, jobs and export earnings.

Special Adviser to the President on Energy, Olu Verheijen, said the Ima development illustrated the importance of creating commercial and investment conditions that allow previously stranded resources to be developed.

The government also noted that Nigerian financial institutions arranged 77 per cent of the project’s financing, further highlighting the participation of domestic financial institutions in the development.

For Nigeria LNG, the project comes as the company continues work on the Train 7 expansion, which is designed to increase the Bonny Island plant’s liquefaction capacity and strengthen the country’s position in the global LNG market.

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