Naira Strengthens Against US Dollar Amid Rising Foreign Reserves

The Nigerian naira strengthened against the United States dollar, marking a 6.26 percent appreciation over a 12-month period. According to official market data, the currency improved to N1,346.79 per dollar on November 6, 2026, compared to N1,436.74 on the corresponding date in 2025. On the daily official market, the naira also posted a slight gain of N1.95, moving from N1,348.74 to N1,346.79 per dollar.

This currency appreciation coincides with robust foreign exchange reserves, which stood at approximately $55.13 billion in early November 2026. Central Bank of Nigeria Governor Olayemi Cardoso emphasized that the apex bank remains committed to maintaining a transparent, liquid foreign exchange market driven by market fundamentals rather than artificial support.

“Our view is one of continuing on the path that we have embarked on, and that is to ensure that we have a market that is transparent, that is liquid, and one that has willing buyer, willing seller,” Cardoso stated in Abuja. He further noted that the country needs a competitive currency determined by economic fundamentals, including stronger exports, foreign direct investment, and lower import dependence.

While the stronger exchange rate has the potential to ease foreign exchange costs for consumers and lower the import expenses for raw materials, machinery, and pharmaceuticals, analysts note that challenges remain regarding long-term economic stability. Observers point out that building reserves is distinct from generating consistent foreign exchange through robust domestic productivity and export earnings.

Data from the second quarter of 2026 showed net foreign exchange inflows of $22.5 billion, driven largely by a reduction in outflows rather than an expansion in total earnings. Furthermore, portfolio investments rose significantly by 45 percent to $6.51 billion, raising discussions among development experts about the need for enduring productive investments, such as expanded manufacturing and reliable infrastructure, to support lasting currency strength.

In other official trading segments, the naira recorded gains against other major global currencies, improving against the Pound Sterling to N1,803.63 and against the Euro to N1,504.10. Meanwhile, the currency maintained stability in the black market at N1,375 per dollar and remained unchanged at N1,356 per dollar at specific commercial bank desks, while market turnover at the official window surged to $232.98 million.