Naira Depreciates Again: Closes at N1,378/$ as CBN Withholds Intervention

The naira closed at N1,378.43 per dollar at the official market on Thursday, July 9, even as Nigeria's external reserves held above $51 billion. Interbank foreign exchange turnover fell sharply by more than 62% to $78.71 million, as the Central Bank of Nigeria (CBN) withheld fresh dollar intervention.

Analysts linked the renewed naira weakness to seasonal demand for dollars from Nigerians funding overseas tuition, travel, and medical trips. The naira is now trading at the black market above N1,400 per dollar for the first time in weeks.

Official Rate Gains Marginally, but Activity Collapses

Data from the CBN showed the naira closed at N1,378.43 to the dollar at the Nigerian Foreign Exchange Market (NFEM). That was a gain of 64 kobo or 0.05% from the N1,379.07 recorded the previous session.

But the marginal improvement masked a steep drop in trading activity. Interbank foreign exchange turnover fell by over 62% to $78.71 million, down from $208.09 million the day before. Completed transactions declined from 150 to 106, signalling limited appetite and no fresh CBN intervention.

Black Market Premium Widens to N46

Beyond the official window, the naira found little support. GTBank's FX desk quoted the currency at N1,385 to the dollar, while the parallel market held at N1,400. The naira also softened against other major currencies, settling at N1,846.82 per pound sterling and N1,576.10 per euro.

The CBN's published rates placed the Saudi Riyal at N367.16, the UAE Dirham at N375.31, the Chinese Yuan at N202.83, and the South African Rand at N84.19. The parallel market rate represents a roughly N46 premium over the official rate, a divergence that reverses the near-convergence Nigeria achieved earlier in 2026 when the naira briefly traded around N1,370 to the dollar in February. It has since slipped to approximately N1,425 in parts of the unofficial market, reflecting a depreciation of about 3.9%.

Seasonal Demand and CBN Strategy Under Scrutiny

Analysts attributed the currency's renewed difficulties primarily to seasonal factors. As summer begins, demand for dollars tends to spike among Nigerians financing overseas education, holidays, medical treatment, and business travel, placing temporary but significant strain on supply.

The level of external reserves, which ordinarily signals CBN capacity to defend the naira, has not been sufficient on its own to contain the seasonal demand surge. Analysts noted that reserves provide firepower rather than a guarantee, and that the apex bank's apparent decision to hold back intervention has left the market to clear at weaker rates.

What This Means for the Naira and Businesses

Looking ahead, analysts said sustained exchange rate stability will hinge on a reliable flow of foreign currency from oil export revenues, diaspora remittances, and foreign portfolio investments, combined with continued confidence in Nigeria's ongoing foreign exchange reforms. Without a meaningful pickup in dollar supply to counter the seasonal demand spike, analysts expect the naira to remain under pressure in the weeks ahead, regardless of the country's strong reserve position.