Naira to Dollar: Nigeria’s External Reserves Rise by $890m to $41bn
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Naira to Dollar: Nigeria’s External Reserves Rise by $890m to $41bn |
Nigeria’s external reserves hit $41bn in August 2025, rising by $890m despite continued naira to dollar depreciation.
Nigeria’s External Reserves Hit $41 Billion
Nigeria’s external reserves have climbed to $41 billion as of August 2025, marking a $890 million increase from the $40.11 billion recorded in July 2025. This 2.19% rise was confirmed by the Central Bank of Nigeria (CBN) in its latest official data release.
The new figure represents the highest reserves level since December 2024, when the country’s foreign reserves stood at $40.88 billion. Analysts believe this growth provides a crucial boost to Nigeria’s foreign exchange buffer amid ongoing economic challenges.
CBN Governor’s Position on Rising Reserves
At the 301st Monetary Policy Committee meeting, CBN Governor Olayemi Cardoso noted that the recent gains reflect stronger inflows and efforts to stabilize Nigeria’s financial system.
According to him, maintaining higher reserves is key to restoring confidence in the economy and supporting the naira against persistent depreciation.
Expert Predictions and Market Reactions
Earlier in July, a CardinalStone mid-year outlook report predicted that Nigeria’s reserves would close 2025 at around $41 billion. This forecast now appears on track, underscoring renewed investor optimism in Nigeria’s ability to manage foreign inflows.
However, despite the positive reserves data, the naira to dollar exchange rate continues to experience downward pressure. As of Wednesday, the currency depreciated to ₦1,536.73 per dollar, according to the CBN’s official rate.
For more insights on Nigeria’s currency performance, see this recent update on the naira’s consecutive falls.
Key Highlights of Nigeria’s Foreign Reserves Performance
- External reserves rose by $890 million in one month.
- Current level of $41 billion is the highest since December 2024.
- Boost attributed to stronger inflows and tighter monetary policy.
- Despite reserves growth, the naira continues to weaken against the US dollar.
What This Means for the Economy
A stronger reserves position gives the CBN more room to defend the naira, stabilize imports, and reassure foreign investors. Yet, without structural reforms to boost local production and reduce import dependency, the benefits may remain short-lived.
For readers tracking Nigeria’s financial outlook, related updates are available on androidpols.com.ng, which covers naira-dollar fluctuations and CBN policy decisions.
Reserves Rise but Naira Still Under Pressure
Nigeria’s external reserves crossing the $41 billion mark is a welcome development and signals stronger inflows into the economy. However, the persistent naira depreciation against the dollar highlights the need for broader reforms beyond monetary interventions.
As the year progresses, both local and global investors will closely watch how Nigeria balances reserves growth with currency stability. For additional global economic context, visit the International Monetary Fund (IMF).
