The naira continued its strong rally against the dollar yesterday, exchanging at N1,455/$ amid declining forex speculation and a narrowing gap between official and parallel market rates.
According to data from the Nigeria Foreign Exchange Market (NFEM), the naira traded at N1,455/$ officially, while it exchanged between N1,460 and N1,470/$ in the black market.
The naira’s strongest gain this year, buoyed by a surge in foreign reserves to $43.05 billion and reduced speculative activities, as the Central Bank of Nigeria (CBN)’s reforms continue to build market confidence.
Analysts say the rebound is being driven by “a combination of stronger demand for the naira, reduced speculative trading, and rising foreign reserves now at $43.05 billion.”
The CBN, under Governor Olayemi Cardoso, has implemented sweeping forex reforms that have curtailed speculation and narrowed the official-parallel market spread. The apex bank is injecting liquidity into the market, ensuring effective reserves management, and boosting FX supply to end users, all of which have attracted fresh interest from foreign investors.
According to Cardoso, gross external reserves stood at $43.05 billion as of September 11, 2025, compared with $40.51 billion at the end of July 2025, giving an import cover of 8.28 months.
“Similarly, the second quarter 2025 current account balance recorded a significant surplus of $5.28 billion compared with $2.85 billion in the first quarter of 2025,” he stated at the 302nd Monetary Policy Committee meeting in Abuja last week.
President of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, said key measures such as the Foreign Exchange (FX) Code, investor confidence, and foreign direct investment policies are “effectively putting FX speculators in check.”
He explained that the FX Code “comprehensively addresses various aspects of market conduct and practices,” while entrenching transparency and accountability in the FX market.
At the launch of the FX Code, Cardoso stressed: “The FX Code represents a decisive step forward, setting clear and enforceable standards for ethical conduct, transparency, and good governance in our foreign exchange market. The era of opaque practices is over. The FX Code marks a new era of compliance and accountability. Under the CBN Act 2007 and BOFIA Act 2020, violations will be met with penalties and administrative actions.”
Gwadabe added that the reforms reflect “the level of creativity, policy and hard work” Cardoso has invested in ensuring forex inflows remain steady and accessible to businesses.