Nigeria’s foreign exchange reserves recorded a significant increase in the first week of June, surpassing the $50 billion mark and providing further support for the country’s economic stability.
According to data released by the Central Bank of Nigeria (CBN), the nation’s gross external reserves rose by approximately $456.77 million within four days, climbing from $49.58 billion at the beginning of June to $50.037 billion as of June 4.
The increase reflects a positive trend in Nigeria’s foreign currency position and highlights growing confidence in the country’s external finances. One of the most notable movements occurred on June 3, when the reserves jumped by about $155 million in a single day, rising from $49.80 billion to $49.96 billion.
The growth in reserves comes at a time when the naira continues to show relative stability in the foreign exchange market. Although the local currency experienced a slight decline at the close of trading on Friday, it remained stronger than levels recorded in previous weeks.
The naira closed at N1,365 per dollar in the official foreign exchange market on Friday, compared to N1,359.75 per dollar on Thursday. Despite this minor depreciation, the currency maintained a relatively stable performance throughout the week.
Market data showed that the naira traded within a narrow range over the five trading days. It opened the week at N1,366 per dollar on June 1 before strengthening to N1,360.22 per dollar on June 2. The exchange rate remained around N1,360 per dollar on June 3 and improved slightly to N1,359.75 per dollar on June 4 before easing back to N1,365 per dollar at the end of the week.
Even with Friday’s decline, the naira remained stronger than the rates seen during the previous week, when it traded between N1,372 and N1,377 per dollar. This suggests that recent improvements in Nigeria’s foreign exchange market continue to provide support for the local currency.
Financial analysts have linked the increase in external reserves to several positive developments in the economy. Improved earnings from exports, particularly crude oil exports, contributed to the growth in foreign currency inflows. In addition, stronger remittance inflows from Nigerians living abroad helped boost the country’s reserve position.
Experts also noted that the CBN’s strategic interventions in the foreign exchange market have played a role in maintaining stability. Through carefully timed dollar sales and purchases, the apex bank has been able to reduce excessive market volatility while gradually strengthening reserve buffers.
Furthermore, ongoing reforms aimed at improving transparency and liquidity in the foreign exchange market have attracted investor interest and increased confidence among market participants.
With external reserves now above $50 billion and the naira showing signs of resilience, analysts believe Nigeria is in a stronger position to manage exchange rate pressures and support broader economic growth in the months ahead.
