Naira Gains Ground as Forex Supply Rises, External Reserves Hit $41.2 Billion
- The Nigerian currency, the naira, has continued to soar in the foreign exchange market, with predictions of further gains
- The local currency traded high as foreign exchange liquidity improved in the markets due to heightened supply
- Experts are optimistic that the naira will remain strong and competitive amid the nation’s rising reserves
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian currency, the naira, has maintained its ground against the US dollar amid fresh forex supplies.
The local currency appreciated in the Nigerian Foreign Exchange Market (NFEM) on Thursday, August 28, 2025.
Source: Getty Images
The naira appreciates in the FX market
Data from the apex bank showed that the naira touched an intra-day high of N1,538.54, worse than the previous day’s rate.
However, the FX market’s intra-day rate closed stronger than the previous day, indicating increased forex supply.
According to reports, FX traders confirmed that the naira appreciated by 0.10%, closing at N1,535 per dollar, supported by a stronger dollar supply and reduced demand.
The local currency traded between N1,535 per dollar and N1,538 amid a surge in Nigeria’s external reserves.
Nigeria’s FX reserves climb
A previous report by Legit.ng disclosed that Nigeria’s gross reserves rose to $41.22 billion as of August 27, 2025, representing a gain of $23.70 million from the previous day.
The nation’s reserves grew by over $1 billion in less than 14 days, as Nigeria’s oil output increased to 1.71 million barrels per day in July.
Experts have said the naira may likely stay steady as external reserves continue to climb, despite a dip in crude oil prices.
Oil and gold prices rise
Meanwhile, global oil and gold prices have remained elevated amid geopolitical tensions.
Data from the international oil market disclosed that oil prices rose slightly on Thursday, August 28, 2025, reversing early losses after President Trump expressed displeasure over overnight Russian missile attacks on Ukraine.
Brent Crude increased 57 cents, or 0.8% to settle at $68.62 per barrel, while WTI gained 45 cents, or 0.7% to close at $64.60.
Gold prices reportedly hit a five-week high, aided by a weaker dollar, as investors sought havens amid lingering concerns over the US Federal Reserve’s independence.
Gold prices climbed 0.6% to $3,416.14 per ounce, while US gold futures for December delivery stood at $3,466.10.
Source: Getty Images
Looking forward, traders are monitoring India’s response to US pressure to halt Russian oil patronage after Trump raised tariffs on Indian imports to 50% on Wednesday, August 27, 2025.
CBN releases new exchange rate to buy and sell dollars
Legit.ng earlier reported that CBN has released new official exchange rates for buying and selling the US dollar as the naira showed mixed performance across currency markets.
The move comes amid sustained demand from corporate foreign exchange users and ongoing efforts to stabilise the market with dollar interventions.
Trading data on Tuesday, August 26, 2025, showed the naira gaining marginally by ₦3 at the parallel market, closing at ₦1,547 per dollar.
Source: Legit.ng
