Naira Strengthens as Dollar Falls Due to Declining Reserves”?

The Nigerian naira strengthened by 0.56% last week, appreciating to N1,509 per dollar on Friday, February 20, 2025.

For the first time in nearly two years, the parallel and official foreign exchange market rates converged at N1,510 per dollar.

Janet Ogochukwu, a senior banker and economist, credited the Central Bank of Nigeria’s policies for the naira’s stability. “Apart from reflecting the naira’s actual value, the reforms have helped narrow the gap between official and parallel windows,” she explained.

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Despite the naira’s gains, Nigeria’s foreign reserves declined by $360 million to $38.73 billion as of February 20, 2025. CBN Governor Olayemi Cardoso noted that the reserves remain sufficient to cover 9.6 months of imports.