Naira Strengthens to ₦1,349 Against Dollar as Foreign Reserves Rise

The naira strengthened against the United States dollar for a third consecutive trading session, closing at ₦1,349 per dollar on Nigeria’s official foreign exchange market on Wednesday, October 28, according to data from the Central Bank of Nigeria (CBN).

The development represents an improvement from Tuesday’s closing rate of ₦1,357 per dollar and follows the currency’s sharp depreciation on October 23, when it closed at ₦1,370 per dollar.

According to a report published by Nairametrics on October 29, the naira gained ₦8 against the dollar during Wednesday’s trading session, extending its recovery over three consecutive sessions.

The report also indicated that Nigeria’s external reserves had crossed $55 billion, providing an important buffer for meeting international payment obligations and supporting confidence in the country’s external financial position.

Foreign exchange movements remain important to Nigeria’s economy because the country depends on imported machinery, industrial inputs, medicines and other essential goods. Changes in the exchange rate can influence import costs and, in turn, affect prices paid by consumers.

A stronger naira could help reduce some foreign currency costs for businesses that rely on imports. However, the extent to which consumers benefit will depend on factors including import prices, transportation expenses, fuel costs and domestic market conditions.

The recent recovery does not necessarily mean that the foreign exchange market has achieved lasting stability. The naira’s performance will continue to depend on dollar supply, demand from importers and investors, and broader international market developments.

For households and businesses, sustained exchange rate stability could make financial planning easier and reduce uncertainty surrounding the cost of imported goods.

Market participants will therefore continue monitoring CBN exchange rate data and external reserve movements for signs of whether the naira’s recovery can be maintained.

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