Naira Drops Against Dollar and Pound, Gains Against Euro in Official Market

The naira weakened against the US dollar and the British pound in the official foreign exchange market on Friday, July 10, but posted a modest gain against the euro, according to fresh data from the Central Bank of Nigeria (CBN). The local currency closed at N1,379.62 per dollar, a decline of 0.09% from the previous day's rate of N1,378.43.

Official Market Performance

Data from the Nigerian Foreign Exchange Market (NFEM) showed the naira shed N1.19 against the dollar by the close of Friday's trading session. Against the British pound, the naira fell by N3.80 to close at N1,850.62 per pound, down from N1,846.82 recorded on Thursday. However, the naira appreciated by 43 kobo against the euro, closing at N1,575.66 per euro compared with N1,576.09 the previous day.

The CBN quoted the following official selling rates for major currencies: US Dollar at N1,379.62, British Pound Sterling at N1,850.62, Euro at N1,575.66, CFA at N2.40, Chinese Yuan (Renminbi) at N203.56, Danish Krone at N210.77, Japanese Yen at N8.52, Saudi Riyal at N367.44, South African Rand at N84.53, SDR at N1,875.58, Swiss Franc at N1,707.45, WAUA at N1,871.05, and UAE Dirham at N375.63.

Parallel Market and Banking Sector

In the parallel market, trading remained steady. Currency trader Abdullahi told Legit.ng: "We bought the dollar at N1,417/$1 and sold it at N1,427/$1. The British pound traded at N1,875 (buying) and N1,895 (selling), while the euro exchanged at N1,577 (buying) and N1,597 (selling)." At the GTBank foreign exchange desk, the dollar was quoted at N1,386, a N1 uptick from the previous session.

Interbank foreign exchange turnover fell by roughly 10% on Friday, dropping to $71.044 million from $78.708 million recorded a day earlier. The number of deals completed in the official market also declined, falling to 87 transactions from 106 on Thursday.

Foreign Exchange Inflows and Economic Outlook

Research from Coronation Merchant Bank's subsidiary indicated that total foreign exchange inflows into Nigeria reached $990 million last week. Foreign Portfolio Investors led all categories, contributing 35.81% of the total, equivalent to $350 million. Exporters accounted for 28.72%, or $280 million, while the CBN provided 11.15%, or $110 million. Non-bank corporations made up a further 10.92% of inflows, reflecting continued participation from the private sector.

Earlier, the International Monetary Fund (IMF) retained Nigeria's economic growth forecast steady at 4.1% for 2026 and 4.3% for 2027, signalling continued confidence in the country's reform trajectory even as global risks intensify. The figures appear in the IMF's July 2026 World Economic Outlook Update, titled 'Global Economy in Crosscurrents of War and Technology,' and are unchanged from the projections the fund published in April 2026. The report attributes Nigeria's resilient outlook to stronger macroeconomic stability and the trade advantages that come with being an oil-exporting nation.

For Nigerian businesses and consumers, the continued pressure on the naira against the dollar and pound means higher costs for imported goods and services, while the slight gain against the euro offers marginal relief for euro-denominated transactions.