The ongoing implementation of the newest Foreign Exchange Manual introduced by Central Bank of Nigeria (CBN) since June 1, has firmed up naira and triggered foreign reserves growth.
The naira appreciated to N1,359.50 to dollar at the official window but traded flat at N1,400 to dollar at the parallel market. This created a gap of N40.5 between the official and parallel market rates.
The local currency also traded flat against the British Pounds, closing at N1,870 to Pounds Sterling.
In emailed note to investors, Financial Derivatives Company Limited led by economist, Bismark Rewane, said the International Air Transport Association (IATA) exchange rate for tickets depreciated to N1,377 to dollar.
The naira last week appreciated by N5.74 at the official market, closing at N1,361.05 to dollar.
The Nigerian naira has very strong support from external reserves, which moved up to roughly $50.34 billion on June 9.
This gives almost nine months’ cover on imports. This implies that the CBN is sufficiently positioned to defend the currency window and cut out speculators’ pressure on it.
Nigeria’s external reserves, which provide the CBN with the capacity to support the local currency and meet external obligations, have continued to rise steadily. Data published on the apex bank’s website showed that reserves increased to $49.80 billion as of June 1, 2026, from $48.32 billion recorded on May 7.
The gross external reserves have further climbed to a record $50.04 billion, reinforcing investor confidence and boosting the CBN’s capacity to support the local currency.
Other analysts said the naira appreciation was supported by improved liquidity in the Nigerian Foreign Exchange Market (NFEM) window, alongside growing external reserves that have continued to bolster confidence in the market.
The gross external reserves surge, is reinforcing investor confidence and boosting the CBN’s capacity to support the local currency.
The CBN Governor, Olayemi Cardoso, described the new manual as part of efforts to strengthen Nigeria’s macroeconomic foundation, improve transparency, and restore confidence in the foreign exchange market.
His remarks went beyond the unveiling of a policy document, reflecting the broader direction of the current foreign exchange reforms being pursued by the apex bank under the present administration. Cardoso made it clear that the foreign exchange market is not simply a platform for buying and selling dollars.
According to his policy philosophy, it plays a major role in determining price stability, investment confidence, and the smooth movement of goods and capital within an economy that is connected to global markets. He noted that foreign exchange is a critical enabler in any open economy because it anchors price stability, facilitates the flow of goods and capital, and shapes investor sentiment.
The Deputy Governor for Economic Policy, Mohammed Sani Abdullahi, whose presentation preceded Cardoso’s remarks, provided deeper technical details regarding the operational provisions of the manual.
His contribution showed clearly that the revised manual is not merely an administrative document, but is a major component of the ongoing transformation of Nigeria’s foreign exchange market and wider financial system.
Under the new FX manual guidelines, authorised dealers are permitted to engage in spot foreign exchange transactions among themselves, with customers, and with the CBN in any acceptable foreign currency for delivery within a maximum of two business days (T+2). The manual stipulates that all interbank spot transactions must be executed through an electronic trading system approved by the CBN.
The apex bank further directed authorised dealer banks to maintain adequate credit, settlement, and risk limits for all counterparties participating on the approved trading platform. Banks are also required to strictly comply with Net Open Position (NOP) limits and ensure that no breaches occur at the close of any trading session.
The manual also allows Authorised Dealer banks to conduct spot foreign exchange transactions with non-resident customers and clients in any acceptable foreign currency, provided settlement is completed.
