The Naira extended its appreciation streak on Friday, closing at N1,342.5/$, an improvement from N1,355.25/$ recorded at the end of the previous week.
The gains were supported by improving global sentiment and a weaker U.S. dollar, according to data published on the Central Bank of Nigeria’s (CBN) website.
The performance reflects a steady recovery in the foreign exchange market, driven by both external factors and domestic policy interventions.
The currency maintained a consistent upward trend throughout the trading week, signalling renewed short-term confidence among market participants.
What the data is saying
The naira recorded steady gains across all trading sessions during the week, reinforcing its recent recovery trend.
- It opened the week at N1,358/$ on Monday and strengthened to N1,348/$ on Tuesday.
- The currency appreciated further to N1,341.99/$ on Wednesday and N1,341.01/$ on Thursday.
- It closed the week at N1,342.5/$ on Friday, marking a clear improvement from the previous week’s close of N1,355.25/$.
This reflects a notable rebound from the prior week, when the naira traded as weak as N1,389/$ before gradually recovering.
More insights
Despite the appreciation, Nigeria’s external reserves continued to decline, highlighting underlying pressures in the FX market.
- External reserves dropped to $48.65 billion as of April 16, 2026.
- This represents a decline from $48.72 billion at the start of the week and $48.81 billion at the close of the previous week.
- The decline suggests continued interventions by monetary authorities to stabilise the currency and meet FX demand.
Analysts note that sustained reserve drawdowns could pose risks to long-term stability if not supported by stronger inflows from oil exports and foreign investments.
More insights
Global developments also played a significant role in supporting the naira’s rally, particularly the weakness in the U.S. dollar.
- The dollar index fell by 0.49% to 97.73, hitting its lowest level since late February.
- The index recorded a two-week decline of about 2.5%, its sharpest drop in a year.
- The euro gained 2.7% during the week, while the Japanese yen also strengthened against the dollar.
The dollar weakened following easing geopolitical tensions in the Middle East, after assurances that the Strait of Hormuz would remain open for global shipping. This reduced demand for safe-haven assets and boosted emerging market currencies.
What you should know
Nairametrics reported earlier that the naira extended its recent rally on Wednesday, closing at N1,341.99/$ at the official market, its strongest level since February 18, 2026, when it traded at N1,340/$.
Nairametrics also recently reported that recent volatility of the exchange rate at the black market has been linked to fiscal leakages, speculation and arbitrage activities, which far outpace the optimism at the official market.
The CBN had earlier projected a positive outlook for the country’s external reserves despite recent declines.
- The apex bank expects reserves to rise to $51.04 billion in 2026 from $45.01 billion in 2025.
