The naira moved through the four-day trading week with ups and downs but finished on a strong note.
As a result, it recorded a notable weekly gain.
Naira Weekly Gain Boosted By Liquidity
Steady liquidity helped the local currency gain ₦14.98 in the official foreign exchange market.
By Friday, traders quoted the dollar at ₦1,465.67, which was stronger than last week’s ₦1,480.65, according to the CBN.
Over the week, the naira added ₦10.67 compared with Monday’s opening rate of ₦1,476.34.
However, the final session told a different story.
On that day, the naira lost 0.7% from Thursday to Friday.
Parallel Market Strength
In the parallel market, often called the black market, the naira climbed ₦35 within the week.
Consequently, it closed at ₦1,460 to the dollar, improving from ₦1,495 the previous Friday.
At the same time, Nigeria’s external reserves climbed higher.
By September’s end, they reached $42.35 billion.
This reflected an increase from $41.42 billion at the beginning of the month.
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FX Reforms Restore Confidence
Speaking at Lagos Business School, CBN governor Olayemi Cardoso linked the gains to reforms in the FX market.
He said the Bank merged multiple exchange rate windows, adopted a “willing buyer, willing seller” system, and cleared old obligations.
Together, these steps rebuilt investor trust and helped boost Nigeria’s external reserves.
Cardoso also explained new channels for diaspora inflows and investment, including the Non-Resident Nigerian platform.
Through this platform, Nigerians abroad can open bank accounts remotely, making remittances and investments easier to send home.
Economists emphasised the broader impact of these reforms.
Afreximbank chief economist, Yemi Kale, said the flexible exchange rate acts as a “shock absorber.”
Therefore, it allows the naira to adjust gradually to oil price swings and global economic changes, avoiding sudden crises.
