Naira Strengthens to N1,355/$ Amid Reserve Decline

The Naira strengthened to N1,355/$ in the official foreign exchange market on Friday, marking its strongest level in recent sessions, according to data published by the Central Bank of Nigeria (CBN) on Saturday. This appreciation occurred despite a continuing decline in Nigeria's external reserves, raising concerns about the sustainability of the currency's recovery.

The latest performance indicates a steady appreciation trend recorded throughout the shortened trading week following the Easter holiday, with trading resuming on Tuesday. The Naira's gains were consistent throughout the week, reflecting a reversal of last year's post-Easter depreciation trend and indicating short-term currency stabilization.

The recent performance of the Naira comes amid ongoing monetary and foreign exchange reforms by the CBN. Despite the Naira's appreciation, Nigeria's external reserves continued to decline in April, which raises concerns about the sustainability of these recent gains.

The CBN had earlier projected a positive outlook for the country's external reserves despite the recent decline.