Naira Hits Two-Month High as CBN Reopens OMO to Retail Investors After 7 Years
The naira has strengthened to a two-month high as the Central Bank of Nigeria (CBN) reopened its Open Market Operations (OMO) market to individuals and other non-bank investors for the first time in seven years, giving the apex bank another tool to manage liquidity and support currency stability.
The move marks a significant reversal of a 2019 policy that restricted OMO bills — among the highest-yielding and relatively low-risk naira instruments — to banks and selected institutional investors.
Under the revised framework, individuals, corporates and non-bank financial institutions can now participate in both the primary and secondary OMO markets, with bids and settlements processed through deposit money banks.
The CBN’s decision comes as policymakers seek to strengthen liquidity management and deepen the domestic financial market, while the naira continues to trade at stronger levels than during much of 2024 and 2025.
According to MarketsReporters’ analysis of the apex bank’s data, the naira traded at an average of about N1,357.7/$ on Friday, compared with N1,357.2/$ on June 16.
The reopening of OMO announced on Friday to retail investors is part of a broader overhaul of the CBN’s liquidity-management framework.
The central bank has also eased restrictions on banks’ access to its Standing Lending Facility, or Discount Window, removing curbs linked to participation in foreign-exchange transactions and primary auctions of government securities.
One restriction remains: institutions that access the Discount Window cannot bid in OMO auctions on the same day.
Naira maintains 2026 gains
The latest currency performance marks a broader turnaround for the naira, following two years of sharp depreciation after major foreign-exchange reforms in 2023 and 2024.
The currency stabilised in the second half of 2025 and appreciated against the dollar, eventually exiting Africa’s 10 worst-performing currencies in October 2025.
The improvement reflected stronger foreign-exchange liquidity, higher external reserves and policy measures aimed at improving the functioning of the FX market.
The naira entered this year on a firmer footing and has continued to trade at stronger levels than during much of the previous two years.
By August 14, the official exchange rate stood at about ₦1,357.7/$.
Data from African Markets, a real-time market-tracking platform, showed that the naira was the second-best-performing currency among 17 African currencies against the dollar year-to-date as of August 16, with a gain of nearly 6 percent.
The relative strength of the currency has provided some relief to importers and borrowers with dollar exposure while also reducing the naira value of foreign-currency liabilities.
