Naira gains N11.35 to close at N1,346.90/$ as weekly FX turnover hits $4.52bn

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The naira appreciated by 0.84% against the US dollar at the Nigerian Foreign Exchange Market (NAFEM), closing the week at N1,346.90/$ on Friday, August 21, 2026. Data from the Central Bank of Nigeria (CBN) showed the local currency gained N11.35 from the N1,358.25/$ recorded on August 14.

FX turnover more than doubles

Total NAFEM turnover reached about $4.52 billion between Monday and Friday, a 107.6% increase from the approximately $2.18 billion recorded during the trading week of August 10-14. The naira opened the week at N1,350/$ on August 17 and strengthened gradually during the sessions.

On Monday, the currency traded between N1,361/$ and N1,347/$ before settling at N1,350/$. It closed at N1,350.70/$ on August 18, N1,351/$ on August 19 and N1,347.50/$ on August 20. Friday's closing rate of N1,346.90/$ was the naira's strongest level of the week.

CBN data showed the currency traded within a range of N1,342/$ to N1,348/$ on Friday. The weighted average exchange rate stood at N1,346.49/$, while the simple average was N1,346.07/$.

Weekly transactions reflected sustained activity in the official market. NAFEM turnover stood at $1.41 billion on August 17, followed by $1.08 billion on August 18 and $1.11 billion on August 19. Turnover on August 20 was $920.46 million.

External reserves at highest since 2009

The stronger naira performance coincides with an improvement in Nigeria's external reserves. The country's reserves rose to $52.02 billion as of July 20, 2026, the highest level recorded since January 2009.

The reserve position also surpassed the CBN's December 2025 projection of $51.04 billion for the whole of 2026. The apex bank had linked its reserve outlook to stronger crude oil earnings, ongoing reforms in the foreign exchange market and improved inflows into the country.

What it means for the naira

The rise in reserves and the sharp jump in FX turnover suggest improving liquidity in the official market. For Nigerian businesses and consumers, a firmer naira at NAFEM could help stabilise exchange rate expectations and ease pressure on imported input costs in the coming weeks.

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