Naira climbs to N1,322.50/$ as forex reserves top $54bn despite lower trading

The naira strengthened to N1,322.50/$ on Friday, September 4, 2026, closing unchanged from Thursday but stronger than the N1,335.50/$ level at the week's start on August 31. This represents a gain of N13, or 0.97%, between Monday and Friday, with the currency posting three straight sessions of gains before holding steady. According to Central Bank of Nigeria data, foreign exchange market turnover fell by about $1.05 billion, dropping from $3.19 billion the prior week to $2.14 billion in the week ending September 3, with no turnover reported for Friday as of the filing time.

At the same time, Nigeria's external buffers improved. Foreign exchange reserves crossed the $54 billion mark, reaching approximately $54.08 billion on September 3—up from $53.99 billion the previous day and well above the Central Bank's projected reserve level of about $51.04 billion for the whole of 2026. Nairametrics noted that the naira broke below the N1,330/$ threshold on Tuesday, September 1, for the first time since 2024, underscoring the sustained appreciation.

A stronger naira can lower the cost of imported goods, ease inflationary pressure, and reduce the naira needed to service foreign-denominated debt. However, the sharp drop in trading volume may signal weaker market activity or trader caution. With the currency now above N1,320/$, will you see lower prices for imported items, adjust your foreign-currency holdings, or wait for further moves before making major purchases or investments?

SOURCE: https://nairametrics.com/2026/09/05/naira-gains-n13-as-weekly-fx-turnover-falls-by-1-05-billion/