The naira closed the second week of November flat across the various foreign exchange markets, even as Nigeria’s external reserves continued to grow and provide some measure of support for the local currency.
According to data published by the Central Bank of Nigeria, the naira ended the week at N1,442.43 per dollar on Friday, reflecting a depreciation of 0.4 percent or N5.86 on a week-on-week basis when compared with the N1,436.57 recorded at the close of trading the previous Friday at the Nigerian Foreign Exchange Market.
Over the course of the five trading days in the official market, the currency lost N5.14 as the dollar was quoted at N1,442.43 on Friday against N1,437.29 quoted at the beginning of the week, indicating that pressure on the local currency persisted despite improved reserve levels.
On a day-to-day basis, the naira weakened slightly by 99 kobo from the N1,441.44 per dollar quoted on Thursday, highlighting the fragile balance between demand and supply within the official FX window.
In the parallel market, which is also widely known as the black market, the naira appreciated marginally by 0.2 percent, trading at N1,457 compared with N1,460 quoted on Monday, the first trading day of the week. This slight gain in the informal market underscored shifting market sentiments, with traders reacting to expectations of improved liquidity and the impact of recent regulatory actions.
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Nigeria’s external reserves continued their upward trajectory, rising to $43.53 billion as of November 13, 2025. This reflected a 0.48 percent increase from the $43.32 billion recorded on November 6, 2025, based on figures from the Central Bank.
The steady growth in reserves has been seen as a positive signal of improved inflows and enhanced capacity to defend the currency during periods of heightened speculative activity or increased demand for foreign exchange.
Afrinvest Securities Limited, in its latest market commentary, reported that the naira appreciated across both the official and parallel channels, supported largely by ongoing interventions from the Central Bank. The firm noted that the naira gained 0.4 percent week-on-week to close at N1,442.43 per dollar at the NAFEM window. Likewise, in the parallel market, it appreciated by 1.5 percent week-on-week against the US dollar, closing at N1,445 per dollar. The report highlighted the narrowing gap between official and unofficial rates, describing it as evidence of reduced speculative pressure and gradually improving market confidence. Analysts at Afrinvest said, “Looking ahead, we expect the naira to trade within a similar band next week, supported by curtailed speculative activities and strategic interventions by the CBN in times of mounting demand pressure.”
Analysts at FSDH also observed that the naira’s relative stability in recent weeks has been driven by greater market transparency, strengthening reserve levels, and increased foreign exchange inflows. They explained that in October 2025, the currency firmed up to around N1,460 per dollar, a development they attributed to renewed confidence in the Nigerian Foreign Exchange Market as liquidity improved and speculative demand reduced.
While they acknowledged that short-term risks have moderated, they emphasised that sustaining the current stability will require disciplined monetary policy management and consistent communication from the monetary authorities to keep market expectations anchored.
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They projected that the naira would likely maintain a relatively stable outlook through the fourth quarter of 2025, with the possibility of moderate appreciation should inflows continue at the current pace, particularly from foreign investment, oil earnings, and other external sources that contribute to reserve accumulation and overall market liquidity.