Naira FX liquidity surge Nigeria sees currency strengthen to ₦1,359 amid improved CBN liquidity, despite foreign reserves dipping below $50bn

The Nigerian naira recorded a strong performance on Thursday, strengthening significantly against the US dollar as improved foreign exchange liquidity from the Central Bank of Nigeria, CBN, boosted market confidence across both official and parallel markets.

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The Naira FX liquidity surge was reflected in the Nigerian Foreign Exchange Market, where the official rate appreciated to ₦1,359.32 per US dollar, marking one of its strongest showings in recent trading sessions.

Intraday trading remained stable within a tighter band of ₦1,351.50 to ₦1,365, signalling reduced volatility and improving sentiment among traders and businesses.

Market data also showed interbank turnover rising to ₦71.156 million across 115 deals, suggesting eased pressure on foreign currency demand and improved liquidity conditions in the system.

The Naira FX liquidity surge Nigeria extended into the parallel market, where the currency strengthened further to ₦1,380 per dollar, indicating broad based confidence across trading segments.

Analysts attributed the gains to increased dollar supply and reduced speculative demand, which helped the local currency stabilise after months of pressure.

Despite the positive momentum, Nigeria’s external reserves declined slightly, falling below the $50 billion mark to $48.89 billion, a level last seen before earlier peaks in 2025.

The reserves had previously climbed above $50 billion, their highest level in over a decade, before recent fluctuations in global financial flows.

Global commodity trends also supported emerging market currencies, with oil prices rising as Brent crude and West Texas Intermediate both posted gains during trading.

Gold prices also advanced, reflecting cautious investor sentiment ahead of key US inflation data, while a softer dollar provided additional support for commodities.

The Naira FX liquidity surge Nigeria has placed the local currency among the world’s better performing currencies in recent rankings, with analysts noting its improved stability in recent weeks.

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Economists suggest that sustained liquidity improvements and stable oil revenues could help maintain the naira’s positive trajectory in the near term, offering relief to businesses and consumers.