The Naira has recorded its third consecutive gain against the United States dollar at the official foreign exchange market this week.

According to the Central Bank of Nigeria’s data, the Naira continued its impressive run against the dollar, appreciating to N1,521.46 on Wednesday. This represents a significant gain of N4.6 on a day-to-day basis.

In contrast, the Naira remained flat at N1,533 per dollar in the black market, maintaining the same exchange rate as Tuesday and Monday this week.

The Naira’s uptrend at the official foreign exchange market follows similar gains since Monday, indicating a favorable standing against other foreign currencies in the global market.

This development may be linked to the recent rise in Nigeria’s external reserves, which reached $41.3 billion in August, according to the Central Bank of Nigeria.

The increase in reserves is attributed to improved oil receipts, moderation in demand pressures, and renewed offshore investor inflows.

The reserves’ growth provides a cushion for Nigeria’s ability to meet its external obligations and defend the Naira against speculative attacks.

Some analysts expect the Naira to remain stable, underpinned by robust foreign exchange liquidity and an efficient foreign exchange market. However, others caution that Nigeria’s reserves remain vulnerable to global market volatility, particularly given the fragile state of the oil market.