(DDM) – The Nigerian naira recorded a marginal appreciation against the United States dollar at the official foreign exchange market on Friday, ending the trading week on a positive note.
The modest gain came amid renewed optimism in the foreign exchange market following an increase in Nigeria’s external reserves.
Data obtained from the Central Bank of Nigeria showed that the naira closed trading at ₦1,421.63 per dollar on Friday.
This represented a slight improvement compared to the ₦1,422.07 exchange rate recorded at the official market on Thursday.
The movement reflected a day-to-day appreciation of ₦0.44 against the US dollar.
Market analysts described the appreciation as modest but symbolically important in a period of cautious currency recovery.
They noted that even small gains help to boost confidence among investors and market participants.
Diaspora Digital Media (DDM) gathered that the naira’s performance throughout the week was mixed.
Records from the official market indicated that the local currency suffered three losses and recorded two gains against the dollar within the same week.
Despite the mixed performance, the week ended on a positive note with Friday’s appreciation.
At the parallel foreign exchange market, the naira remained largely stable against the dollar.
Findings from multiple Bureau de Change operators at Wuse Zone 4 in Abuja showed that the naira exchanged at approximately ₦1,490 per dollar throughout the week.
Operators attributed the stability in the black market to cautious demand and reduced speculative activity.
They also noted that some traders were adopting a wait-and-see approach due to recent policy signals from the Central Bank of Nigeria.
The naira’s slight appreciation came as Nigeria’s foreign exchange reserves crossed the $46 billion threshold.
According to official figures released by the Central Bank of Nigeria, the country’s external reserves rose to $46.01 billion as of January 22, 2026.
This marked an increase from the $45.95 billion recorded on January 19, 2026.
The rise in reserves is seen as a positive development for Africa’s largest economy.
Economists say stronger reserves improve the central bank’s capacity to intervene in the foreign exchange market when necessary.
They also provide a buffer against external shocks and help stabilize the value of the local currency.
Some analysts believe the increase in reserves may be linked to improved oil export earnings and better management of foreign inflows.
Others point to recent reforms in the foreign exchange market aimed at improving transparency and reducing distortions.
The Central Bank of Nigeria has repeatedly emphasized its commitment to a market-driven exchange rate regime.
The apex bank has also stressed the importance of rebuilding reserves to support macroeconomic stability.
While the naira’s appreciation was modest, financial experts say sustained improvement will depend on consistent foreign exchange inflows.
They identified crude oil production levels, foreign direct investment, and diaspora remittances as critical factors.
Analysts also warned that inflationary pressures and import demand could limit further gains if not carefully managed.
Market watchers believe continued policy consistency will be crucial to maintaining currency stability.
They added that investor confidence remains sensitive to fiscal discipline and broader economic reforms.
For now, the slight appreciation and rising reserves have provided a cautiously optimistic signal to the market.
Many stakeholders are hopeful that sustained reserve growth will translate into improved exchange rate stability in the coming months.
