Naira Surges to Three-Week High as FX Reserves Near $50 Billion, New Exchange Rate Emerges

• The naira appreciates to N1,357.26 per dollar, marking its strongest performance in nearly a month
• Nigeria's external reserves rise above $49 billion, boosting market confidence and currency stability
• Contrasting trends in official and black markets indicate a gradual convergence in exchange rates

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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

The Nigerian naira recorded its strongest performance in nearly a month on Wednesday, June 3, 2026, appreciating to N1,357.26 per dollar in the official foreign exchange market as improved liquidity conditions and rising external reserves continued to support the local currency.

Data released by the Central Bank of Nigeria (CBN) showed that the naira gained N3.79 against the US dollar, closing at N1,357.26 at the Nigerian Foreign Exchange Market (NFEM), compared with N1,361.05 recorded on Tuesday.

The latest exchange rate marks the naira’s highest level in about three weeks, with the currency last trading around the same range on May 6, 2026, when it closed at N1,357.34 per dollar.

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Official market records fresh gains

The appreciation reflects growing stability in Nigeria’s foreign exchange market, driven largely by stronger dollar inflows and improved investor confidence.

Although data on total turnover and transaction volumes for Wednesday were unavailable at the time of reporting, trading activity earlier in the week showed a mixed picture.

NFEM turnover fell by 14.97 per cent to $676.43 million on Tuesday from $795.55 million on Monday. The number of completed deals also declined slightly to 376 from 392 transactions over the same period.

In the interbank segment, market activity weakened further on Wednesday.

The number of deals dropped by 19.05 per cent to 136 from 168 recorded on Tuesday, while total turnover declined by 21.25 per cent to $133.73 million, down from $169.82 million a day earlier.

Black market naira weakens

While the naira strengthened in the official market, the opposite trend was recorded in the parallel market.

The local currency depreciated by N8 to close at N1,393 per dollar on Wednesday, compared with N1,385 per dollar, where it had traded since the end of last week.

Despite the decline, the gap between the official and parallel market exchange rates narrowed to N18 per dollar from N24 per dollar on Tuesday, indicating a gradual convergence between both markets.

External reserves rise above $49bn

One of the key factors supporting the naira’s recent gains is the steady increase in Nigeria’s external reserves.

CBN data showed that the country’s reserves rose by $1.55 billion to $49.87 billion as of June 2, 2026, up from $48.32 billion recorded on May 7. The increase represents a 3.2 per cent growth within the period.

Higher reserves strengthen the apex bank’s ability to meet foreign exchange obligations and provide support for the naira when necessary.

Stronger FX inflows boost market confidence

The improvement in reserves has been fueled by stronger foreign exchange inflows into the economy.

According to CBN figures, Nigeria recorded net foreign exchange inflows of $9.22 billion in January 2026, nearly triple the $3.11 billion recorded in December 2025.

Total FX inflows rose by 45.24 per cent to $12.23 billion during the period, while outflows moderated significantly.

The increase was driven by both official and autonomous sources. Inflows through the CBN climbed to $4.66 billion from $3.69 billion, while autonomous inflows surged to $7.57 billion from $4.73 billion, highlighting stronger participation across Nigeria’s foreign exchange market and providing additional support for the naira’s recovery.

FX reserves surge to 7-year high

Legit.ng earlier reported that Nigeria’s external reserves expanded by $4.39bn between December 23, 2024, and December 23, 2025, offering fresh optimism about the country’s foreign exchange stability and the outlook for the naira.

Data sourced from the Central Bank of Nigeria shows that reserves climbed by about 10.75 per cent within the period.

As of December 23, 2025, Nigeria’s FX reserves stood at $45.24bn, up from $40.85bn recorded on the same date in 2024.