Local currency shows stability across FX markets, supported by rising reserves, improved liquidity, and investor confidence…
The naira maintained a steady performance on Tuesday, closing mostly flat across key segments of Nigeria’s foreign exchange (FX) market, as the country’s external reserves continued to rise.
At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira depreciated slightly by ₦1.42 (0.09%), with the dollar quoted at ₦1,438.71 compared to ₦1,437.29 on Monday, according to the Central Bank of Nigeria (CBN).
In the parallel market (black market), however, the naira strengthened by ₦5 (0.3%), closing at ₦1,455 per dollar, up from ₦1,460 recorded the previous day.
Rising External Reserves Support Stability
Nigeria’s external reserves hit $43.36 billion as of November 10, 2025, marking a steady increase from $37.8 billion in June and $42.9 billion in October, according to a report by FSDH Merchant Bank.
The growth reflects higher oil receipts, multilateral inflows, and portfolio investments, strengthening the CBN’s ability to stabilise the FX market and provide a buffer against external shocks.
The report noted that sustaining this positive trend will require:
- Export diversification
- Fiscal discipline
- Favourable global risk conditions
Bank-Specific FX Rates and Developments
Guaranty Trust Bank (GTBank) reported that its naira card FX rate for international payments closed at ₦1,444 per dollar on Tuesday, slightly higher than ₦1,442 on Monday.
GTBank recently raised the dollar spending limit on naira cards by 500%, from $1,000 to $6,000 per quarter, reflecting improved liquidity in the FX market.
Market Outlook
Analysts at FSDH said the naira’s stability is underpinned by:
- Improved market transparency
- Stronger reserves
- Rising FX inflows
In October 2025, the currency strengthened to around ₦1,460 per dollar, signalling renewed confidence in the Nigerian Foreign Exchange Market (NFEM) as liquidity improved and speculative demand eased.
While short-term risks have moderated, maintaining exchange rate stability will depend on:
- Disciplined monetary policy operations
- Consistent communication to anchor market expectations
Analysts project relative stability for the naira in the fourth quarter of 2025, with potential for moderate appreciation if inflows continue.
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