Market News

The naira on Tuesday appreciated further against the dollar in the official foreign exchange (FX) market to a five-month high of N1,343.32, following increased market activity and rising external reserves. 

Data published by the Central Bank of Nigeria (CBN) showed that the naira strengthened by N6.22, as the dollar was quoted at N1,343.32 on Tuesday, representing a 0.46 percent appreciation from the N1,349.54 quoted on Monday at the Nigerian Foreign Exchange Market (NFEM).

In the parallel market, also known as the black market, the local currency steadied at N1,410 per dollar on Tuesday. The gap between the official and parallel market rates widened to 4.99 percent from 4.52 percent on Monday.

Although the NFEM figures for deals and turnover were not available as of the time of reporting, market activity had increased, with total turnover at the NFEM window surging by 301.18 percent to $1.41 billion in a single trading day on Monday, compared with $352.34 million recorded on Friday. The number of deals also increased from 315 on Friday to 394 on Monday.

At the interbank segment of the FX market, however, total turnover declined by 16.64 percent to $364.71 million on Tuesday from $437.53 million recorded on Monday. The number of deals also dropped by 39.33 percent from 178 on Monday to 108 on Tuesday.

Nigeria’s external reserves, which give the CBN the firepower to defend the naira and meet the country’s external obligations, have maintained a steady growth trajectory, rising to $52.32 billion as of August 17, 2026. 

This represented a 27.73 percent increase from the $40.96 billion recorded on August 18, 2025, according to data published on the CBN website.

A report by Coronation Merchant Bank noted that at the official market, the naira appreciated by 0.59 percent week-on-week, closing at N1,357.61/$1 during the review week. The parallel market held steady at N1,420.00/$1, reflecting relatively stable foreign exchange liquidity in the informal market segment.

Total FX inflows into the Nigerian Foreign Exchange Market increased significantly to $1.77 billion from $0.83 billion in the previous week. 

Domestic sources accounted for 63.44 percent of total inflows, driven primarily by exporters, which contributed 31.20 percent, and non-bank corporates, which accounted for 17.67 percent.

The development, according to the report, underscores the growing contribution of autonomous market participants to FX supply and points to improved liquidity conditions in the official market.