Naira gains for third straight day, hits N1,349/$ as reserves cross $55B
The naira strengthened to N1,349/$ at the official market on Wednesday, October 28 — its third consecutive gain and a N21 recovery from the October 23 crash that pushed it to N1,370/$. The currency gained N8 on the day, trading between N1,342 and N1,363.50 with a weighted average of N1,347.53.
Foreign reserves simultaneously crossed $55 billion, the highest level in over 18 years and well above the CBN's year-end projection of $51 billion. This reserve buffer supports confidence in meeting foreign currency obligations, though the CBN notes reserves alone don't drive the naira — dollar supply, import demand, and FX inflows matter equally.
Interbank turnover dropped sharply to $244.6 million from $543.7 million the previous session, suggesting thinner liquidity even as the currency appreciates. Globally, the dollar steadied after the US Fed held rates, while the Bank of Canada hiked for the first time in three years.
For anyone tracking FX: the naira has clawed back most of last week's losses. But with turnover declining and global dollar dynamics shifting, the sustainability of this recovery depends on whether supply improvements are structural or temporary.
Are you locking in rates for upcoming dollar needs, or betting the recovery holds through year-end?