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Forex Update: Naira Strengthens Amid $38bn Reserve Boost

Published

2 weeks ago

Apr 29, 2025.

Naira appreciated to N1,605/$ in the black market, gaining N5 from last Friday’s rate of N1,610.
Official market rate slightly weakened to N1,599.95/$, down by 41 kobo from last week.
CBN Governor Cardoso announced Nigeria’s foreign reserves now exceed $38 billion, offering nearly 10 months of import cover.

Nigeria’s currency, the naira, continued to gain value against the United States dollar on Monday, especially in the black market, also known as the parallel market.

According to information shared by Aminu Gwadebe, who is the National President of the Association of Bureau de Change Operators of Nigeria (ABCON), the naira was exchanged at N1,605 per dollar on Monday. This was an improvement compared to the rate of N1,610 per dollar recorded last Friday.

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This means that within one business day, the naira appreciated by N5 against the dollar in the black market, showing some level of confidence returning to the local currency.

However, the story was slightly different in the official foreign exchange market, where the naira lost a small amount of value.

On Monday, the official rate was N1,599.95 per dollar, a slight drop from the previous Friday’s rate of N1,599.54 per dollar. The difference, though small, indicates the naira weakened by about 41 kobo in the official window.

Despite this minor dip at the official end, Nigeria’s financial outlook seems more positive. Over the weekend, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, gave a hopeful update during his closing remarks at the 2025 IMF/World Bank Spring Meetings held in Washington, D.C., USA.

He revealed that Nigeria’s foreign reserves have now surpassed $38 billion, which is a strong sign of economic stability.

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He explained that with this level of reserves, Nigeria can cover nearly ten months’ worth of imports, which provides a financial cushion and can help stabilize the naira in the coming months.

This development follows last Friday’s strong performance of the naira in both the parallel and official exchange markets, where the local currency showed signs of strength.

The recent appreciation of the naira is seen as a result of several policies and reforms introduced by the Central Bank and the federal government aimed at boosting investor confidence, increasing dollar supply, and reducing pressure on the foreign exchange market.

As Nigeria continues to manage inflation and stabilize its economy, many experts believe that maintaining strong foreign reserves and improving dollar inflow through exports and remittances will be key to sustaining the naira’s growth in the

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