Figures cited by Vanguard show that the Nigerian Naira has maintained a steady appreciation trend, closing the week at N1,353 per dollar in the official market. This resurgence is attributed to a significant boost in the nation’s external reserves, which have now climbed to $50.45 billion, the highest level seen in over a decade.
The Central Bank of Nigeria (CBN) has successfully managed to converge the official and parallel market rates, with the spread narrowing to less than 2%. This stabilization is providing much-needed relief to importers and manufacturers who have struggled with foreign exchange volatility for years.
The influx of foreign capital is being driven by improved oil production and a surge in diaspora remittances, which have been channeled through formal banking corridors. Analysts suggest that the CBN’s “orthodox” monetary policy is finally yielding results in inflation control.
BusinessDay reported that “the reserve accretion provides the CBN with a massive buffer to defend the currency against speculative attacks.” ThisDay also noted that “investor confidence is returning to the Nigerian capital market as the FX liquidity crisis finally eases.”
Echotitbits take: A $50bn reserve is a psychological and economic win. If this stability holds, we might see the CBN begin to lower the Monetary Policy Rate (MPR) by mid-year to stimulate credit growth.
Source: BusinessDay – https://businessday.ng/markets/article/naira-loses-0-5-despite-13-year-high-external-reserves-of-50-45bn/, February 27, 2026
Photo credit: BusinessDay
