The Nigerian naira hit N1,526.09 per dollar in the official foreign exchange market on Monday. This represents a 0.4% gain from Friday’s closing rate of N1,531.57, marking the currency’s best performance since July 14, 2025, when it traded at N1,518.73 per dollar.
The naira’s impressive rally stems primarily from increased foreign exchange inflows driven by non-bank corporate entities, which have significantly enhanced market liquidity conditions.
These corporate inflows demonstrate growing confidence in Nigeria’s foreign exchange market structure and reflect improved business sentiment among international companies operating in the country.
Parallel Market Maintains Stability
While the official market celebrated gains, the parallel market maintained steady pricing at N1,540 per dollar since August 25, 2025.
This stability in the unofficial market suggests reduced arbitrage opportunities and indicates better alignment between official and parallel market rates.
Foreign Exchange Reserves Show Marginal Growth
Nigeria’s gross external reserves experienced a modest increase of $161.06 million, to reach $41.27 billion, according to Central Bank of Nigeria data.
However, total foreign exchange inflows into the NAFEM window decreased to $706.70 million from the previous week’s $751.70 million, indicating some volatility in capital flows.
August Performance Reflects Improved Market Conditions
The naira’s August performance demonstrated sustained improvement, supported by higher external reserves and increased foreign exchange inflows from both foreign portfolio investors and diaspora remittances.
These diverse funding sources provide a more robust foundation for currency stability and reflect Nigeria’s expanding access to international capital markets.