The naira strengthened further against the United States dollar on Thursday, supported by recent measures by the Central Bank of Nigeria (CBN) to ease restrictions on banks’ access to foreign exchange and government securities transactions.
The local currency appreciated by N2.93 at the Nigerian Foreign Exchange Market (NFEM), with the dollar quoted at N1,357.65, compared with N1,360.58 recorded on Wednesday.
In the parallel market, however, the naira remained unchanged at N1,424 per dollar, widening the gap between the official and parallel market rates to 4.94 per cent from 4.71 per cent the previous day.
Trading activity also weakened at the interbank segment, with the number of deals falling by 48.42 per cent from 190 on Wednesday to 98 on Thursday. Total turnover declined by 53.13 per cent to $79.09 million from $168.76 million.
At the NFEM, where Thursday’s turnover figures were unavailable at the time of reporting, activity had risen sharply on Wednesday. Turnover increased to $607.47 million from $184.99 million on Tuesday, representing a 228.38 per cent increase, while the number of deals rose by 119.89 per cent to 409 from 186.
The naira’s latest appreciation comes amid continued growth in Nigeria’s external reserves, which reached a 17-year high of $52.19 billion as of August 12, 2026.
According to CBN data, the reserves increased by 28.39 per cent from $40.65 billion recorded during the corresponding period of 2025.
The rise in reserves provides the apex bank with greater capacity to support the foreign exchange market and meet the country’s external obligations.
The CBN has also removed restrictions that previously prevented banks from accessing its Standing Lending Facility (SLF), also known as the Discount Window, after participating in foreign exchange transactions and primary auctions of government securities.
READ ALSO:Aviation agencies, airlines agree repayment plan as Keyamo resolves labour dispute
The adjustment forms part of the bank’s review of the framework governing access to the Discount Window, Tenored Repo Operations and participation in Open Market Operations (OMO).
In a circular signed by the Acting Director, Financial Markets Department, Okey Umeano, the CBN said restrictions linked to banks’ participation in the Nigerian Foreign Exchange Market had been removed.
The apex bank also lifted restrictions arising from participation in primary auctions of government securities.
The new framework allows banks to participate in the FX market and purchase government securities at primary auctions without losing access to the CBN’s Standing Lending Facility.
Analysts at Quest Merchant Bank Limited said the reforms could improve liquidity in the financial system, strengthen monetary policy transmission and deepen activity in Nigeria’s fixed-income market.
The analysts said the measures were likely to increase activity across the money and fixed-income markets while signalling stronger confidence in FX market stability, reserve adequacy and overall market conditions.
