Naira Continues Appreciation Against US Dollar
The Nigerian naira keeps strengthening against the US dollar as FX reserves climb and reforms take shape Stay informed with todays analysis .
Overview
On September 3 2025 the Nigerian naira extended its modest but steady appreciation against the US dollar in the foreign exchange FX markets This continued upward trajectory reflects positive trends in liquidity reserves and sentiment Notably the Central Bank of Nigeria CBN reported strengthening in the official market while the parallel black market held steady Meanwhile FX reserves grew bolstering confidence in the nairas resilience .
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1 Official Market Performance
The naira inched up slightly to ₦152606 per US dollar on Tuesday a slight gain from ₦152609 the previous day an appreciation of just ₦003 .
In the official exchange window a separate report showed a marginally stronger rate of ₦152576 per dollar on September 2 marking a ₦034 gain compared to the previous day .
2 Parallel Market Trends
- In the black market the naira remained unchanged at ₦1533 per US dollar maintaining the same level from the prior day .
- Meanwhile another parallel FX indicator held flat at ₦1540 suggesting relative stability in informal channels .
3 FX Reserves On the Rise
Critical to the nairas appreciation Nigerias external reserves rose to USD 4142 billion as of September 1 2025 up from USD 4122 billion recorded on August 29 This uptick supports market confidence and the currencys upward movement .
4 Comments from Officials
A presidential spokesperson commented on the trend dismissing the notion of the US dollar as king over the naira a nod to growing currency strength .
Separately the Association of Bureaux de Change Operators of Nigeria ABCON highlighted that part of the nairas steadiness is linked to the Nigeria China currency swap which enables some Chinese enterprises to conduct transactions in naira rather than dollars .
5 Broader Context and Policy Drivers
This appreciation is part of a broader FX stabilization movement In March 2025 major reports highlighted that monetary reforms such as removing fuel subsidies halting excessive money printing tightening monetary policy and narrowing the gap between official and parallel rates have fostered stability .
Moreover foreign investor interest has risen with Nigerias assets becoming attractive due to policy reforms yields and improved currency dynamics The naira had risen more than 7 percent against the dollar since November 2024 making the country a favored frontier market .
Conclusion
The trend of naira appreciation though incremental is a welcome sign With improving reserves ongoing reforms and enhanced investor confidence the currency appears to be regaining some footing against the dollar Sustained liquidity diplomatic and trade diversification such as with China and prudent fiscal monetary actions could further anchor this momentum .