Naira holds steady as interbank activity doubles daily FX liquidity

The naira traded largely flat against the dollar on Monday, the first trading day of August 2026, as stronger interbank activity boosted daily foreign exchange liquidity.

Data from the Central Bank of Nigeria (CBN) showed the naira closed at N1,364.83 per dollar on Monday, compared with N1,368.22 on Friday at the Nigerian Foreign Exchange Market (NFEM). That is a marginal movement of N3.39.

Interbank activity surges

Interbank market activity strengthened significantly during the session. The number of deals more than doubled to 138 on Monday from 67 on Friday, representing a 105.97 percent increase.

Total turnover also surged by 132.33 percent to $137.05 million from $58.99 million recorded at the previous session.

NFEM data for Monday’s deals and turnover were unavailable at the time of filing this report. The market had ended last week on a softer note.

Previous week’s trend and reserves

On Friday, the number of deals declined by 9.39 percent to 222 from 245 on Thursday, while turnover fell by 24.48 percent to $231.41 million from $306.44 million over the same period.

Nigeria’s external reserves, which provide the CBN with the capacity to support the naira and meet external obligations, stood at $51.92 billion as of July 31, 2026, according to data published on the apex bank’s website.

Analysts see stability ahead

Analysts at Coronation Merchant Bank said the naira weakened across both the official and parallel markets last week as persistent foreign exchange demand continued to weigh on the currency despite ongoing policy support.

At the NFEM window, the naira depreciated by 0.45 percent week-on-week to close at N1,368.22 per dollar from N1,362.09 the previous week.

In the parallel market, the exchange rate briefly weakened to N1,410 per dollar before recovering to close at N1,405, unchanged from the preceding week. According to the bank, the stable close in the parallel market suggests that demand pressures were largely absorbed by available market liquidity, preventing a sharper depreciation.

The report also noted that Nigeria’s gross external reserves declined marginally by 0.21 percent week-on-week to $51.92 billion from $52.03 billion, reflecting the CBN’s continued interventions to improve market liquidity and moderate exchange rate volatility.

“We expect the naira to remain broadly stable in the near term, supported by the CBN’s sustained interventions and Nigeria’s healthy external reserve position, which should help contain exchange rate volatility. However, seasonal foreign exchange demand associated with summer travel, offshore tuition payments and importer obligations is likely to keep pressure on the market. While we do not anticipate a sharp depreciation under the current policy stance, the scope for meaningful appreciation remains limited unless foreign exchange inflows strengthen further,” Coronation Merchant Bank said.