CBN says Naira FX gap falls below 2% as reserves top $52.5bn

Central Bank of Nigeria (CBN) says its ongoing monetary and foreign exchange reforms are delivering positive results, with the gap between the official Naira exchange rate and Bureau de Change rates now below 2% as external reserves rose above $52.5 billion.

CBN Governor Olayemi Cardoso, represented by the Acting Director of Corporate Communications and Investor Relations, Hakama Sidi-Ali, said this at the CBN Fair in Gombe.

The development comes as the apex bank points to easing inflation, improved foreign exchange market stability and stronger external reserves as evidence of progress from its monetary reforms.

Cardoso said the disparity between the official and parallel markets have reduced significantly since CBN introduced reforms in 2023.

“The naira continues to strengthen, with the spread between official and Bureau de Change rates now below two per cent,” he said.

He attributed the improvement to disciplined monetary tightening, exchange rate reforms and improved market transparency.

According to Cardoso, the increase in reserves has been supported by sustained inflows and renewed investor confidence in the Nigerian economy.

He said the CBN had introduced several reforms over the past 34 months to support sustainable economic growth, create jobs and reduce poverty.

These include the unification of the foreign exchange market, banking sector recapitalisation, the non-resident Bank Verification Number, the B-Match foreign exchange trading system and the Nigeria Payments System Vision 2028.

Cardoso said the apex bank had worked with the Financial Markets Dealers Association to introduce the Nigerian Overnight Financing Rate as a benchmark for short-term funding transactions.

He said the benchmark would provide a transparent, market-based reference rate and help align Nigeria’s money market with international standards.

According to the CBN, the naira closed at N1,362/$ on Tuesday, an appreciation from N1,365/$ on Monday.

CBN data showed reserves declined to $52.03 billion on July 23 and $52.02 billion on July 24. The balance fell further to $51.97 billion on July 27, $51.94 billion on July 28 and $51.92 billion on July 29.

Despite the recent decline, reserves remain higher than the $51.46 billion recorded at the end of June, representing an increase of about $463 million over the period.

The reserves had risen from $49.80 billion on June 1 to $51.04 billion on June 18, before reaching $51.46 billion by June 30.

External reserves increased by approximately $1.22 billion in May and nearly $1.90 billion between the end of May and the end of June.

The balance subsequently rose from $51.53 billion on July 3 to $51.58 billion on July 6, $51.64 billion on July 7 and $51.71 billion on July 8.

At its 306th meeting held in Abuja on July 20 and 21, 2026, the Monetary Policy Committee retained the Monetary Policy Rate at 26.5%.

The committee also retained the cash reserve ratio at 45% for commercial banks and 16% for merchant banks, while the Standing Facilities Corridor remained at +50/-450 basis points around the MPR. The CRR on non-TSA public-sector deposits was retained at 75%.

Earlier, CBN Branch Controller in Gombe, Yunusa Buba-Mubi, said the fair was part of the bank’s public engagement activities, designed to educate citizens about its policies while providing an avenue for feedback from stakeholders.