The value of the naira continues to improve as the Central Bank of Nigeria sustains its interventions.

The CBN has achieved its objective of stabilising the naira exchange rate as the country’s foreign exchange reserves surged to their highest level in six years.

The latest exchange rate data published showed that at the Nigerian Foreign Exchange Market (NFEM), the naira closed at ₦1,488.92/$1 on Monday, September 22.

Monday's rate was an appreciation of 57 kobo or 0.04% from Friday’s ₦1,489.49/$1.

However, the domestic currency weakened against the pound sterling, closing at ₦2,011.10/£1 compared with ₦2,006.28/£1, and against the euro at ₦1,754.17/€1 versus ₦1,747.98/€1.

In the black market, traders told Legit.ng that the naira exchanged at N1,510 a dollar, the same rate from last week.

CBN sells dollar

The CBN injected $150 million into the market on Monday, selling to deposit money banks to meet demand pressures and help stabilise the exchange rate.

The intervention coincided with fresh data showing that Nigeria’s external reserves stood at $42.03 billion on September 19, the highest since September 2019.

The stock rose by $40 million in one day and has gained $610.8 million so far in September.

Compared with late August levels, reserves are up by $727 million.

The latest figure marks a remarkable turnaround from July, when reserves dropped to $37.18 billion, the lowest in 2025.

Since then, reserves have rebounded by $4.85 billion, a 13% recovery, supported by higher oil inflows, steady remittances and portfolio investment.

Naira's future is bright

The rising reserves give the CBN the ability to defend the naira or finance imports.

Market analysts at Cowry Assets Management described the reserves rally as huge, as it could provide stability for the naira in both official and parallel markets:

“The combination of steady offshore inflows, improved oil earnings, and planned external borrowings should keep reserves on an upward trajectory in the coming months.

"With stronger reserves, the CBN will have greater flexibility to sustain its interventionist approach in the FX market, which in turn should help maintain the relative stability of the naira.”