By Boluwatife Oshadiya | June 16, 2026
Key Points
- The naira appreciated to ₦1,356.27 per dollar at the official market
- Nigeria’s external reserves rose above $50.5 billion, the highest level since 2009
- Improved foreign exchange liquidity supported gains across both official and parallel markets
Main Story
The naira strengthened against the United States dollar on Monday as Nigeria’s gross external reserves climbed to their highest level in more than 17 years.
Data from the Central Bank of Nigeria showed the local currency closed at ₦1,356.27 per dollar at the Nigerian Foreign Exchange Market (NFEM), compared with ₦1,363.83 recorded in the previous trading session.
Transactions at the official market were completed within a relatively narrow range of ₦1,354.50 to ₦1,360 per dollar, indicating stable demand conditions and improved foreign exchange liquidity.
Supporting the currency’s performance was a significant increase in Nigeria’s external reserves, which rose to $50.505 billion. The reserve position marks the country’s strongest external buffer since January 2009 and reflects stronger inflows from crude oil exports and foreign exchange market reforms.
The positive sentiment extended to the parallel market, where the naira appreciated to approximately ₦1,390 per dollar as Bureau de Change operators reported stronger dollar supply relative to demand.
Meanwhile, global oil markets witnessed sharp declines after the United States and Iran announced a framework agreement to reopen the Strait of Hormuz. Brent crude fell about five percent to $82.91 per barrel, while U.S. crude dropped to $80.21.
Although lower oil prices may reduce export earnings if sustained, Nigeria’s current reserve position provides additional support for exchange rate stability.
What’s Being Said
“The improvement in reserves continues to strengthen confidence in the foreign exchange market and supports exchange rate stability,” financial market analysts said following the latest reserve data.
Economists also noted that sustained reserve growth could enhance the Central Bank’s ability to manage short-term currency volatility.
What’s Next
- Investors will monitor whether reserves remain above the $50 billion threshold in the coming weeks
- The Central Bank is expected to continue reforms aimed at improving FX market transparency
- Global oil price movements will remain a key factor influencing reserve accumulation and exchange rate stability
The Bottom Line:
The combination of stronger external reserves and improved FX liquidity is providing meaningful support for the naira. However, sustaining the currency’s gains will depend on continued reserve growth, stable oil revenues and the effectiveness of ongoing foreign exchange market reforms.
