Naira closes at N1,322.50/$ as weekly FX turnover drops 33%

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The naira strengthened to N1,322.50/$ on Friday, September 4, 2026, gaining N13 during the week even as foreign exchange trading activity at the Nigerian Foreign Exchange Market declined sharply. Weekly turnover fell by $1.05 billion, or 33 per cent, to about $2.14 billion between August 31 and September 3, compared with roughly $3.19 billion recorded the previous week.

The local currency closed unchanged from the previous session on Friday, but remained stronger than the N1,335.50/$ it opened with on Monday, August 31. That represents a gain of N13, or 0.97 per cent, over the five trading days.

How the naira moved during the week

The naira started the week at N1,335.50/$ on August 31. It strengthened to N1,329/$ on September 1, then improved to N1,324.50/$ on September 2. The currency gained again on September 3 to N1,322.50/$ and held that rate on Friday.

The Friday closing rate was supported by a weighted average exchange rate of N1,321.22/$. Trading during the session ranged between N1,319.45/$ and N1,324/$.

Compared with the end of August, the naira has also gained ground. It closed at N1,337/$ on August 28, meaning it has appreciated by N14.50, or 1.08 per cent, against the dollar over the period.

FX turnover and reserves position

The naira appreciation came despite a sharp drop in FX market activity. NFEM turnover included $228.52 million on August 31, $574.42 million on September 1, $658.46 million on September 2, and $674.38 million on September 3. No NFEM turnover was reported for Friday, September 4, as of the time of the report.

Nigeria’s foreign exchange reserves crossed the $54 billion mark during the week, reaching approximately $54.08 billion on September 3. Central Bank of Nigeria data showed reserves stood at $53.99 billion on September 2 and $53.90 billion on September 1. The rise has been linked to stronger oil earnings and other foreign exchange inflows.

The latest reserve level has surpassed the CBN’s projected reserve level of about $51.04 billion for the whole of 2026. The naira had earlier broken below the N1,330/$ level on Tuesday, September 1, reaching N1,329/$, its strongest level since 2024.

What it means for the economy

The naira’s recent gains have strengthened Nigeria’s foreign exchange position and provided a bigger buffer against external shocks, while improving the country’s ability to meet international financial obligations.

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