The naira is on a winning streak, achieving its fifth consecutive appreciation against the US dollar and closing the week on a strong note. According to data from the Central Bank of Nigeria, the local currency strengthened to ₦1,457.96 per dollar on Friday, up from ₦1,460.49 the previous day, marking a ₦2.53 gain This week has seen consistent gains, with the most significant increase occurring on Monday, October 20, 2025.
While the official market shows positive movement, the black market has remained stable at ₦1,500 per dollar throughout the week. A key factor driving this trend is Nigeria’s rising external reserves, which reached $42.87 billion as of October 22, 2025, thereby boosting confidence in the naira’s stability.
The ongoing reforms by the Central Bank, aimed at improving transparency in the foreign exchange market, are likely contributing to this upward momentum. A stable naira could enhance trade, attract investment, and reduce import costs. However, economists emphasize that maintaining this progress requires addressing broader economic challenges, such as inflation and production gaps.
In summary, the naira’s recent performance is a positive development, but experts warn against complacency. Long-term stability will depend on striking a balance between effective monetary policy, increased production, and diversified revenue streams.
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