The Naira strengthened further against the United States dollar on Thursday, closing below the N1,360/$ mark for the first time in four weeks amid rising external reserves and sustained foreign exchange market reforms.
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Data from the Central Bank of Nigeria (CBN) showed that the naira closed at N1,359.75/$ on June 4, 2026, compared to N1,360.00/$ recorded a day earlier.
The latest appreciation marks the first time the local currency has traded below the N1,360/$ threshold since May 7, 2026, reinforcing signs of improving stability in the foreign exchange market.
What the data is saying
CBN data indicates that the naira maintained a relatively stable performance during Thursday’s trading session, supported by healthy market activity and improving foreign exchange liquidity.
- The currency traded within a range of N1,356.75/$ and N1,361.50/$ during the session.
- The simple mean exchange rate for the day stood at N1,359.138/$.
- Interbank foreign exchange turnover reached $128.17 million.
- The market recorded 121 interbank deals among participating financial institutions.
The relatively narrow trading band suggests reduced exchange rate volatility and reflects improved balance between foreign exchange demand and supply conditions in the official market.
Get up to speed
The naira’s recent performance coincided with a steady increase in Nigeria’s external reserves and ongoing reforms aimed at improving transparency and efficiency in the foreign exchange market.
- Nigeria’s gross external reserves rose to $49.96 billion as of June 3, 2026.
- The reserves increased by more than $155 million within 24 hours from $49.80 billion recorded the previous day.
- Earlier data showed external reserves gained approximately $1.22 billion during May 2026.
- The CBN recently introduced the Fourth Edition of its Foreign Exchange Manual to strengthen market governance and improve operational efficiency.
The revised FX framework introduced several regulatory changes, including an increase in the allowable advance payment for imports from 15% to 30%, a move aimed at improving trade transactions and easing access to foreign exchange for businesses.
Analysts believe these reforms, combined with stronger foreign exchange inflows from oil exports, remittances, and portfolio investments, have contributed to growing confidence in the market.
The return of the naira below the N1,360/$ level is another indication that recent foreign exchange reforms may be supporting exchange rate stability.
What you should know
The naira closed May 2026 at N1,372/$ at the official market, compared to N1,585.50/$ in May 2025.
The CBN has intensified efforts over the past year to improve liquidity, transparency, and investor confidence in Nigeria’s foreign exchange market.
The CBN has maintained a tight monetary policy stance aimed at preserving exchange rate stability and containing inflationary pressures.
Nairametrics previously reported that reserves declined from above $50.08 billion on March 12 to $49.61 billion by March 23, 2026.
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