3:37

Naira hits 2-year high at N1,329/$ as reserves rise

Published by YuToday Staff

0 views · 2 hours ago · 3:37 read · September 2, 2026

Nigeria’s naira has strengthened to its strongest level in more than two years, closing at N1,329 per US dollar on September 1, 2026. The Central Bank of Nigeria’s latest exchange rates show the currency gained N6.50, or 0.49%, from the previous day’s close. This marks the first time the naira has traded below the N1,330 threshold since May 29, 2024, signaling a significant recovery in the country’s foreign exchange market.

Key takeaways

The naira strengthened to N1,329/$ on September 1, 2026, its strongest level in over two years.
Rising external reserves and improved foreign exchange liquidity are driving the currency’s recovery.
A stronger naira could reduce import costs but may impact exporters’ earnings.
The CBN’s policies and global oil prices will shape the naira’s future performance.

What’s behind the naira’s two-year high?

The naira’s recent appreciation is largely attributed to a combination of rising external reserves and improved foreign exchange liquidity. Analysts suggest that increased dollar inflows, possibly from oil exports and foreign investments, have bolstered the Central Bank of Nigeria’s (CBN) ability to stabilize the currency. Additionally, tighter monetary policies and efforts to curb speculative trading may have contributed to the naira’s strength. While the exact figures for external reserves remain unconfirmed, the CBN’s data indicates a positive trend in foreign exchange availability, which has reduced pressure on the local currency.

How does this compare to past performance?

The naira’s current level of N1,329/$ is its strongest since May 2024, when it closed at N1,329.65/$. This represents a notable recovery from periods of volatility, where the currency often traded above N1,500/$. The recent gains reflect a broader trend of stabilization in Nigeria’s foreign exchange market, though challenges such as inflation and import dependencies persist. Comparing the naira’s performance over the past two years highlights the impact of policy adjustments and external economic factors on the currency’s value.

What does this mean for Nigeria’s economy?

A stronger naira can reduce the cost of imports, particularly for essential goods like fuel and food, which are often priced in dollars. This could ease inflationary pressures and improve purchasing power for Nigerian consumers. However, the benefits are not uniform across all sectors. Exporters, especially those in the oil and agricultural industries, may face reduced earnings when converting dollar revenues back to naira. Policymakers will need to balance these dynamics to ensure sustainable economic growth while maintaining currency stability.

How are Bureau De Change operators responding?

The Association of Bureau De Change Operators of Nigeria (ABCON) has recently appealed to the CBN to extend the deadline for the mandatory recapitalization of Bureau De Change (BDC) operators. This move comes as the naira’s strength may impact the profitability and operations of BDCs, which play a critical role in the foreign exchange market. The recapitalization requirement aims to strengthen the sector, but operators argue that the current economic conditions warrant a delay. The CBN’s response to this appeal remains unconfirmed.

What’s next for the naira and foreign exchange?

The naira’s recent gains provide a temporary boost to confidence in Nigeria’s foreign exchange market, but long-term stability will depend on sustained improvements in external reserves and foreign exchange inflows. The CBN’s policies, including interventions in the forex market and efforts to attract foreign investments, will be crucial. Additionally, global oil prices and Nigeria’s export performance will continue to influence the naira’s trajectory. While the outlook appears positive, uncertainties in the global economy and domestic policies could impact future movements.

What happens next

The naira’s recent gains provide a temporary boost to confidence in Nigeria’s foreign exchange market, but long-term stability will depend on sustained improvements in external reserves and foreign exchange inflows. The CBN’s policies and global oil prices will continue to shape the naira’s trajectory. While the outlook appears positive, uncertainties in the global economy and domestic policies could impact future movements. Investors and businesses should monitor these developments closely to navigate potential risks and opportunities.