Market News

•CBN to sustain liquidity support

The naira closed June 2026 slightly weaker in the official foreign exchange market despite a surge in trading activity that underscored improving liquidity and growing resilience in Nigeria’s currency market.

Data from the Central Bank of Nigeria (CBN) showed the local currency closed the month at N1,381/$1, compared with N1,366/$1 at the beginning of June, representing a depreciation of N15, or about 1.1 per cent.

Although the currency weakened marginally during the month, market experts say the movement reflects a more orderly market compared with the sharp volatility experienced in 2024 and early 2025.Trading activity remained robust during the period, highlighting sustained liquidity in the official foreign exchange market.

Specifically, the June 30 trading session recorded an interbank turnover of $269.90 million, while Nigerian Foreign Exchange Market (NFEM) turnover reached some of its highest levels earlier in the month. Trading volumes climbed to $985.56 million on June 15, $923.64 million on June 25 and $910.78 million on June 29, reflecting healthy market participation and improved dollar liquidity.

Despite the modest depreciation recorded in June, the naira remains significantly stronger than it was a year earlier. The currency traded at N1,532/$1 on June 30, 2025, meaning it has appreciated by about N156, or 10.2 per cent, over the past 12 months.

Analysts attributed the improvement to tighter liquidity management by the CBN, increased diaspora remittances, stronger foreign portfolio investment inflows, improved market transparency and measures designed to curb speculative demand for foreign exchange.

According to them, Nigeria’s immediate challenge is no longer exchange rate management but expanding sustainable sources of foreign exchange through higher oil production, stronger non-oil exports and increased foreign direct investment.

Also, the narrowing gap between official and parallel market exchange rates has reduced speculative trading and encouraged greater reliance on the official market.

“We expect the CBN to maintain its liquidity management and market intervention strategy in the third quarter as seasonal import demand and global market developments continue to shape foreign exchange conditions.

With Nigeria’s external reserves recently rising above $51 billion, confidence is growing that stronger external buffers and sustained reforms will help preserve stability in the foreign exchange market in the months ahead”, analysts at Cordros Research said.