June 5 (THEWILL) — The naira strengthened further against the United States dollar on Thursday, closing below the ₦1,360/$ mark for the first time in four weeks amid rising external reserves and sustained foreign exchange reforms by the Central Bank of Nigeria (CBN).
Data from the apex bank showed the local currency closed at ₦1,359.75/$ on June 4, 2026, compared to ₦1,360.00/$ recorded in the previous trading session. The latest appreciation marks the first time the naira has traded below the ₦1,360/$ threshold since May 7, signalling improving stability in the foreign exchange market.
The currency traded within a relatively narrow range of ₦1,356.75/$ and ₦1,361.50/$ during the session, while the average exchange rate stood at ₦1,359.14/$. Market activity remained healthy, with interbank turnover reaching $128.17 million across 121 transactions.
Analysts attributed the currency’s performance to improving foreign exchange liquidity, stronger market confidence, and a steady rise in Nigeria’s external reserves.
CBN data showed that gross external reserves climbed to $49.96 billion as of June 3, 2026, increasing by more than $155 million within 24 hours. The reserve position had earlier gained about $1.22 billion in May, reflecting stronger inflows from oil exports, remittances, and portfolio investments.
The appreciation also comes amid ongoing reforms in the foreign exchange market. Recently, the CBN introduced the Fourth Edition of its Foreign Exchange Manual, which includes measures to improve market transparency, governance, and operational efficiency. Among the changes was an increase in the allowable advance payment for imports from 15 percent to 30 percent.
The naira’s recovery highlights the impact of the apex bank’s efforts to improve liquidity and restore confidence in the market. For context, the currency closed May 2026 at ₦1,372/$, significantly stronger than the ₦1,585.50/$ recorded in May 2025.
The latest performance suggests recent reforms and improving reserve levels may be helping to anchor exchange rate stability.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
