Naira Falls Across FX Markets as Dollar Liquidity Dries Up, Despite Reserves Hitting $50.4bn
By Aboki Forex —
The naira recorded losses across all foreign exchange market segments last week as dollar liquidity weakened, even as Nigeria’s external reserves continued to climb.
Data from the Central Bank of Nigeria (CBN) showed the naira depreciated by N5.08 week-on-week at the Nigerian Foreign Exchange Market (NFEM). It closed at N1,363.83 per dollar on Thursday, the last trading day before the June 12 public holiday. That was a 0.4 percent decline from N1,358.75 quoted a week earlier.
On a day-on-day basis, the local currency weakened by N1.78 from N1,362.05 recorded on Wednesday. Over the four trading days of the week, the naira lost 99 kobo from N1,362.84 quoted on Monday.
Trading activity at the interbank FX market slowed sharply. The number of deals declined by 30.58 percent week-on-week to 84 transactions on Thursday from 121 deals recorded a week earlier. Compared with Wednesday’s 109 deals, activity fell by 22.94 percent.
Turnover at the interbank segment dropped to $70.42 million on Thursday from $128.17 million on the corresponding day of the previous week. That represented a 45.06 percent decline.
At the NFEM window, transaction volumes were relatively stable. The number of deals stood at 332 on Wednesday, compared with 314 deals recorded during the same period last week. However, activity eased slightly on a day-on-day basis from 336 deals on Tuesday.
Total turnover at the NFEM window settled at $607.89 million on June 10, 2026. That was a 29.12 percent decline from $857.67 million recorded on June 9. Still, turnover remained 18 percent higher than the $514.98 million recorded on June 3, indicating sustained market participation despite the recent slowdown.
In the parallel market, the naira also weakened. It depreciated by N9 to close at N1,409 per dollar on Thursday from N1,400 previously. The spread between the official and parallel market rates widened to N46 per dollar from N38 on Wednesday.
The naira’s weakness came despite continued growth in Nigeria’s external reserves, which provide the CBN with a buffer to support the currency and meet external obligations.
Data from the apex bank showed that gross external reserves rose to $50.42 billion as of June 10, 2026. That was a 32.51 percent increase from $38.05 billion recorded on the same date in 2025.
The reserve build-up reflects stronger foreign exchange inflows, improved investor confidence and the impact of ongoing economic reforms. The International Monetary Fund (IMF) recently noted that Nigeria’s reform programme has significantly strengthened the country’s external position.
According to the Fund, gross international reserves increased to $46 billion in 2025 from $40 billion at the end of 2024. That was supported by a strong current account surplus, foreign portfolio inflows into CBN Open Market Operations (OMO) bills and proceeds from a Eurobond issuance. Net international reserves improved even more sharply, rising to $35 billion at the end of 2025 from $23 billion a year earlier.
Nigeria’s reserve position has continued to strengthen in 2026, recently surpassing the $50 billion mark for the first time in 17 years. That underscores stronger foreign exchange inflows and growing confidence in the country’s economic reform agenda.