Naira Strengthens at Official Market as External Reserves Climb

The Nigerian naira started the week on a positive note, appreciating slightly against the US dollar at the official foreign exchange market.

According to the Central Bank of Nigeria (CBN), the naira closed at N1,531.95 per dollar on Monday, August 5, 2025, an improvement from N1,533.74 recorded the previous Friday. This reflects a modest gain of N1.79—a small but welcome sign of stability in the currency market.

Interestingly, the story is different at the parallel (black) market, where the naira held steady at N1,560 per dollar, showing no movement from Friday’s rate.

This slight appreciation comes at a time when Nigeria’s external reserves are also on the rise. Data from the CBN shows that the country’s reserves climbed to $39.54 billion as of August 1, up from $39.36 billion on July 30.

Analysts say the rising reserves could help strengthen investor confidence and improve foreign exchange liquidity if the trend continues.

 However, they caution that much more consistent gains are needed to bring real relief to businesses and consumers grappling with currency volatility.

For now, the naira’s slight bounce offers a glimmer of hope as the country continues to navigate a tough economic landscape.