The Nigerian naira tested at ₦1,497 to the United States dollar on Monday, reflecting improved stability in the nation’s foreign exchange market as the country’s external reserves rose to $41.571 billion, according to the latest update from the Central Bank of Nigeria (CBN).
The local currency has continued to show resilience against the dollar in recent weeks, buoyed by ongoing post-reform recovery measures and targeted interventions by the apex bank.
Earlier projections by market analysts suggested that the naira could close 2025 within the range of ₦1,580 to ₦1,600 per dollar. However, recent trends in the FX market indicate that the local currency may outperform these estimates if the current momentum is sustained.
Data from the CBN FX market summary showed that the naira appreciated by 5 basis points, closing at ₦1,506.0850/$ as increased dollar inflows supported trading activities. During Monday’s session, the naira fluctuated between ₦1,497.00 and ₦1,509.50.
At the same time, Nigeria’s gross external reserves climbed by $33.27 million to $41.57 billion as of September 8, 2025, highlighting improved forex liquidity.
Traders noted that the combination of rising reserves and stronger FX inflows has provided a cushion for the naira, with expectations that it may remain steady despite volatility in global commodity prices.
Meanwhile, oil prices nudged upward on Tuesday following reports that Israel had launched strikes against Hamas leaders in Doha, escalating tensions in the region. Brent crude gained 37 cents, or 0.6%, to $66.39 per barrel, while U.S. West Texas Intermediate also advanced 0.6% to $62.63, according to a market note by AIICO Capital Limited.
On the commodities front, gold extended its record-breaking rally, supported by widespread expectations that the U.S. Federal Reserve will introduce a rate cut in September. Spot gold rose 0.2% to $3,643.57 per ounce after touching an all-time high of $3,673.95, while U.S. futures settled at $3,682.20.
Global investors are now closely monitoring next week’s Federal Reserve meeting, where a rate cut is widely expected. Such a move would lower borrowing costs, potentially boosting consumer spending and driving further demand for oil and other commodities.
