Nigeria's Foreign Reserves Reach 7-Year High, Naira Strengthens Amid Market Boost

Nigeria's foreign reserves have surged to $43.30 billion, the highest level since October 2018, providing the Central Bank of Nigeria (CBN) with more capacity to defend the Naira against pressures. The Naira appreciated against the US dollar in the foreign exchange market, with gains on Thursday, November 6.

The market sentiment was further bolstered by oversubscribed Eurobond inflows and positive signals of moderate inflation and fiscal reforms. The CBN's adjustment to reduce import costs for businesses is also noted.

Nigeria's trade portal indicates a new exchange rate of N1.470 to the dollar, with the CBN's stated rate to remain until import transactions are fully cleared.