Foreign Reserves Rise to Highest Level in 4 Years, CBN Releases New Exchange Rates
- The CBN now has more firepower to defend the Nigerian currency following the rise in external reserves
- New data shows that the reserves are now at the highest level in over 3 years, following aggressive CBN reforms
- The naira has also achieved a new exchange rate as the market responds to an increase in forex inflow
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Central Bank of Nigeria revealed that the country’s external reserves rose to $41.22 billion as of Tuesday, August 26, 2025.
This marks the first time in over four years that the reserves have crossed the $41 billion mark.
Source: Getty Images
Nigeria's reserves on the rise
The reserves, which strengthen the CBN’s capacity to defend the naira, stood at $41.00 billion on Aug. 19, representing a year-on-year increase of $4.53 billion, or 12.4%, from $36.47 billion on the same date in 2024.
The last time reserves reached this level was on March 12, 2021, when they hit $41.08 billion.
Analysts at FBNQuest said in a note that foreign exchange inflows into Nigeria’s FX market regained momentum in July, reflecting renewed investor appetite.
According to FMDQ data, inflows increased 24% month-on-month to $3.8 billion in July, compared with $3.1 billion in June, although still below the $6.7 billion peak in May.
Foreign portfolio investments remained the dominant source of supply, accounting for about 45% of inflows.
Offshore investor inflows rose to $1.7 billion in July from $1.5 billion in June, supported by carry trade opportunities and relatively stable global macroeconomic conditions.
Naira to dollar exchange rate
Meanwhile, the value of the naira has appreciated against the US dollar following the rise in foreign reserves,
CBN data showed that on Wednesday, August 27, after two straight sessions of marginal losses, the value of the naira gained 0.54 naira to close at N1,537.07 per dollar from N1,537.61 the previous day.
While in the parallel market, the naira was steady at N1,540 per dollar, while GTBank’s FX rate for international transactions remained at N1,544, the same rate since Monday.
Source: Getty Images
Here is a snapshot of the latest exchange rates
- CFA: N2.731
- Yuan/Renminbi: N214.636
- Danish Krona: N238.650
- Euro: N1,781.931
- Yen: N10.381
- Riyal: N409.614
- South African Rand: N86.481
- Swiss Franc: N1,909.173
- Pounds Sterling: N2,066.751
- US Dollar: N1,537.075
CBN gives new order on PoS machines
Earlier, Legit.ng reported that as part of ongoing efforts to tackle rising fraud, the CBN has announced a new instruction for banks and fintechs on their POS machines.
In a circular, CBN said that all PoS devices must now have native geo-location services enabled with double-frequency GPS receivers for reliable tracking.
Also, operators are required to register each terminal with a payment terminal service aggregator and provide accurate coordinates of the merchant or agent’s business location.
Source: Legit.ng
