Naira falls to N1,381.70/$1 as FX reserves hit $51.74 billion

The naira weakened against the US dollar at the official foreign exchange market during the week ended Friday, July 10, extending its losses throughout the trading week. Data from the Central Bank of Nigeria (CBN) showed the naira closed at N1,381.70/$1 on Friday, July 10, compared with N1,370.00/$1 recorded on Friday, July 3, representing an N11.70 depreciation, or 0.85% week on week.

Weekly trading breakdown

The local currency came under sustained pressure during the week, recording losses on four of the five trading days, with the official closing rate ending the week at its weakest level. On Monday, July 6, the naira depreciated marginally to N1,371.00/$1, slipping by N1 from the previous Friday’s closing rate of N1,370.00/$1. The currency weakened further on Tuesday, July 7, when the closing rate fell to N1,379.00/$1, representing an N8 depreciation from Monday’s level.

The naira remained unchanged on Wednesday, July 8, closing at N1,379.00/$1, although it traded within an intraday range of N1,376/$1 to N1,387/$1. The downward trend continued on Thursday, July 9, with the official closing rate easing to N1,379.25/$1, a marginal N0.25 depreciation from the previous day. The currency weakened further on Friday, July 10, closing at N1,381.70/$1, a daily loss of N2.45 and the weakest official closing rate recorded during the week.

Market turnover and trading activity

CBN data also showed fluctuations in trading activity during the review period. Total NFEM turnover stood at $220.18 million on Monday before rising to $423.02 million on Tuesday and peaking at $504.67 million on Wednesday. Activity moderated to $298.92 million on Thursday, while the Friday data did not reflect any total NFEM turnover. Interbank turnover also varied during the week, increasing from $54.18 million on Monday to $208.09 million on Wednesday before easing to $78.71 million on Thursday and $71.04 million on Friday.

Foreign reserves at $51.74 billion

The naira depreciation comes amid a steady rise in the country’s foreign reserves. According to the CBN data, Nigeria’s foreign reserves increased to $51.74 billion on Thursday, July 9. Compared with the $51.52 billion recorded the previous week, the reserves have increased by $217.7 million in one week. Nairametrics reported the country’s foreign reserves hit the $51 billion mark on June 18, 2026, marking their highest level in about 17 years as stronger foreign exchange inflows and improved market conditions continued to support the country’s reserve position. While it slid below the $51 billion mark in the remaining days of June, the reserves have been trending upwards in July.

What this means for the naira

Despite the current steady posture of the foreign reserves, global brokerage firm EBC Financial Group has said that Nigeria’s foreign reserves remain vulnerable to volatile portfolio inflows and the country’s continued dependence, warning that it may not be sustainable. The Group, in its market outlook released on Thursday, noted that much of the increase recorded recently has been driven by cyclical factors that could reverse if market conditions deteriorate. It added that the rebound in reserves reflects stronger investor confidence following the CBN foreign exchange reforms, but warned that its sustainability will depend on the country’s ability to attract more long-term investment, maintain oil earnings and preserve confidence in the naira.