The Nigerian naira strengthened against the United States dollar on Thursday, closing below the N1,360/$ mark for the first time in four weeks. This development comes amid rising external reserves and sustained foreign exchange market reforms, signaling improved stability in the country’s currency market.
Data from the Central Bank of Nigeria (CBN) showed that the naira closed at N1,359.75/$ on June 4, 2026, compared to N1,360.00/$ recorded a day earlier. The latest appreciation marks the first time the local currency has traded below the N1,360/$ threshold since May 7, 2026, reinforcing signs of improving stability in the foreign exchange market.
CBN data indicates that the naira maintained a relatively stable performance during Thursday’s trading session, supported by healthy market activity and improving foreign exchange liquidity. The relatively narrow trading band suggests reduced exchange rate volatility and reflects improved balance between foreign exchange demand and supply conditions in the official market.
The naira’s recent performance coincided with a steady increase in Nigeria’s external reserves and ongoing reforms aimed at improving transparency and efficiency in the foreign exchange market. The revised FX framework introduced several regulatory changes, including an increase in the allowable advance payment for imports from 15% to 30%, a move aimed at improving trade transactions and easing access to foreign exchange for businesses.
Analysts believe these reforms, combined with stronger foreign exchange inflows from oil exports, remittances, and portfolio investments, have contributed to growing confidence in the market. The return of the naira below the N1,360/$ level is another indication that recent foreign exchange reforms may be supporting exchange rate stability.
The naira closed May 2026 at N1,372/$ at the official market, compared to N1,585.50/$ in May 2025. The CBN has intensified efforts over the past year to improve liquidity, transparency, and investor confidence in Nigeria’s foreign exchange market. The central bank has maintained a tight monetary policy stance aimed at preserving exchange rate stability and containing inflationary pressures.
In related market developments, the Iata Warns Jet sector continues to face headwinds, while the Ifc has highlighted opportunities in infrastructure financing. Meanwhile, the Ngx Group has reported mixed performance across key indices, with Ai Data Centers emerging as a growing investment focus. Nigerian Stocks Shed some gains in recent sessions, reflecting cautious investor sentiment, and Nigeria Manufacturing Capital inflows have shown modest improvement amid ongoing policy adjustments.
Nairametrics previously reported that reserves declined from above $50.08 billion on March 12 to $49.61 billion by March 23, 2026. Olalekan Adigun is a seasoned political analyst and writer with extensive experience in crafting compelling narratives and executing strategic initiatives. Known for his insightful commentary on governance, policy, and socio-economic issues, his analysis continues to inform market participants and policymakers alike.
