Naira Appreciates by 2.3% Against Dollar in October, Driven by Rising External Reserves
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The Naira recorded a significant appreciation against the United States Dollar in October, marking one of its strongest monthly performances in recent months.
According to data from the Central Bank of Nigeria (CBN), the Naira appreciated by 2.3 percent month-on-month, strengthening to ₦1,421.73 per dollar on October 31 from ₦1,455.23 at the start of the month. This represents a gain of ₦33.50, reflecting renewed stability in the foreign exchange market following the implementation of the Electronic Foreign Exchange Matching System (EFEMS) introduced by the apex bank last year.
At the parallel market, however, the local currency traded relatively flat, maintaining an average rate of ₦1,485 per dollar throughout the same period.
The latest surge in the Naira’s value coincides with a steady build-up in Nigeria’s external reserves, which rose by 1.79 percent to $43.17 billion as of October 30, up from $42.41 billion recorded on October 2, 2025.
Analysts attribute the improvement to increased foreign exchange inflows, enhanced market liquidity, and sustained policy reforms aimed at stabilizing the currency.
The CBN has maintained that its recent interventions and policy realignments are geared toward ensuring transparency and efficiency in the FX market, reducing speculative trading, and boosting investor confidence.
The Naira’s latest uptrend marks one of its best performances since the introduction of EFEMS, underscoring growing optimism for a more stable exchange rate in the months ahead.
