Naira Appreciates to N1484 as Reserves Rise to $41.8bn

The naira appreciated to N1484 per dollar on Tuesday at the Nigerian Foreign Exchange Market (NFEM) after breaking a key psychological barrier earlier in the week.

During intraday trading, the local currency touched N1479 before closing slightly weaker at N1485, according to data released by the Central Bank of Nigeria (CBN).

The sustained rebound at the official FX window has bolstered bullish sentiment, supported by the rise in Nigeria’s external reserves and broader weakness in the U.S. dollar index. CBN figures show gross external reserves rose to $41.844 billion on Tuesday from $41.698 billion on Friday, buoyed by steady inflows.

Analysts say the naira’s stability is reinforcing a decline in headline inflation while easing pressure on investors. The local currency has benefited from policy adjustments and favourable global market conditions that have weighed on the dollar.

In the commodities market, crude oil prices climbed on Tuesday as renewed tensions in the Russia–Ukraine war spurred fresh buying. Light crude oil futures rallied past the 200-day moving average of $63.32, triggering momentum that lifted prices above last week’s high of $64.08.

West Texas Intermediate (WTI) was last seen testing resistance at $64.25, with potential upside targets at $65.41 and $66.03 if the rally continues.