Naira Holds Steady at N1,379.65 as $970 Million Inflow Bolsters FX Market

The Nigerian naira remained stable against the United States dollar at the official foreign exchange market on Monday, July 13, 2026, closing at N1,379.6504 per dollar despite global economic pressures that have strengthened the greenback. Foreign exchange inflows reached approximately $970 million last week, providing critical support for the local currency.

Data from the Central Bank of Nigeria (CBN) showed the naira opened at N1,379.6201 and traded within a narrow band of N1,378 to N1,381 per dollar throughout the session. Demand for foreign currency remained subdued, while available dollar supply was sufficient to meet market needs.

Interbank Turnover Rises as Trading Volumes Stay Modest

Although trading volumes were modest, interbank foreign exchange turnover recorded a notable increase. CBN data showed turnover rose by 21.14% to $86.14 million, compared with $71.04 million in the previous trading session. However, the number of completed interbank deals dipped slightly to 85 transactions, down from 87, suggesting that market participants adopted a cautious approach while awaiting fresh economic signals.

Analysts attributed the naira's resilience to the absence of significant demand pressure from international payment obligations and a balanced flow of foreign exchange into the official market.

FPIs Lead $970 Million Weekly Inflow

A report by Coronation Merchant Bank revealed that Nigeria attracted approximately $970 million in foreign exchange inflows last week. Foreign Portfolio Investors (FPIs) emerged as the biggest contributors, accounting for 30.29% of total inflows. Exporters and importers followed closely with 30.14%, while non-bank corporate organisations contributed 26.49%. The Central Bank supplied 6.93% of total inflows, and other market participants accounted for the remaining 5.40%.

The continued inflow of foreign exchange has helped improve liquidity in the official market and reduce pressure on the naira.

Analysts Warn of External Risks Despite Short-Term Optimism

Despite the naira's recent stability, analysts warn that external risks remain elevated. The renewed global energy crisis has strengthened the US dollar as investors seek safer assets amid rising geopolitical tensions and inflation concerns. Higher crude oil prices have also fuelled expectations that the US Federal Reserve could maintain an aggressive monetary tightening stance. The yield on the two-year US Treasury note has climbed to its highest level in more than a year, while swap market data indicates investors have almost fully priced in another US interest rate hike in September.

A stronger dollar has already weakened major global currencies, including the euro, British pound and Japanese yen, creating additional challenges for African economies.

According to Coronation Merchant Bank, sustained foreign exchange inflows and the CBN's continued interventions are expected to keep the currency trading within a relatively stable range. However, they cautioned that underlying demand for foreign exchange remains strong and could continue to exert depreciation pressure if inflows weaken or global financial conditions deteriorate further.

For Nigerian businesses and importers, the naira's stability offers a brief window of predictability, but the reliance on foreign portfolio inflows means the currency remains vulnerable to sudden shifts in global investor sentiment.