Market News

Nigeria’s naira climbed the most against the dollar in two weeks after the central bank said net foreign-exchange reserves climbed to the highest in more than three years.

The local unit appreciated 0.6% to 1,530 as of 11.15 a.m. in Lagos Wednesday, according to spot trading on BMAT, tracked by Bloomberg, the biggest gain since March 18 and the strongest exchange rate in almost a month.

Net foreign-currency reserves rose almost sixfold to $23 billion by December from a year earlier after authorities curbed liabilities including swaps and forward obligations to rebuild market confidence, the Central Bank of Nigeria said in emailed statement.

This is the first time that the CBN had published the figures since 2023, when Nigeria’s external-reserves position came into question after the central bank in August of that year disclosed large deals with JPMorgan Chase & Co. and Goldman Sachs Group

Inc. involving foreign-currency pledges for cash to support government revenue. The country’s gross reserves rose for a third day to $38.33 billion as of March 27, according to latest data tracked by Bloomberg.

By strengthening reserves, the central bank hopes to “rebuild confidence in the FX market and increase reserve buffers,” it said. “Going forward, the CBN anticipates a steady uptick in reserves, underpinned by improved oil production levels, and a more supporting export growth environment.”

That report cast doubt on the true size of the nation’s reserves and the capacity of the central bank to support the naira. The currency has lost about 70% of its value versus the dollar since June 2023, when President Bola Tinubu implemented reforms to lure inflows.