Naira rises to five-month high of N1,343.32/$ as dollar supply improves
By Aboki Forex —
The naira appreciated to a five-month high of N1,343.32 per dollar in the official foreign exchange market on Tuesday, helped by increased market activity and rising external reserves. Central Bank of Nigeria (CBN) data showed the currency strengthened by N6.22, a 0.46 percent gain from the N1,349.54 quoted on Monday at the Nigerian Foreign Exchange Market (NFEM).
In the parallel market, the local currency steadied at N1,410 per dollar on Tuesday. The gap between the official and parallel market rates widened to 4.99 percent from 4.52 percent on Monday.
Surge in market turnover
Although NFEM figures for deals and turnover were not available as of the time of reporting, market activity had picked up sharply. Total turnover at the NFEM window surged by 301.18 percent to $1.41 billion in a single trading day on Monday, compared with $352.34 million recorded on Friday. The number of deals also rose from 315 to 394.
At the interbank segment of the FX market, total turnover declined by 16.64 percent to $364.71 million on Tuesday from $437.53 million recorded on Monday. The number of deals dropped by 39.33 percent, from 178 on Monday to 108 on Tuesday.
External reserves climb
Nigeria’s external reserves, which give the CBN the firepower to defend the naira and meet external obligations, have maintained a steady growth trajectory. They rose to $52.32 billion as of August 17, 2026, a 27.73 percent increase from the $40.96 billion recorded on August 18, 2025, according to CBN website data.
A report by Coronation Merchant Bank noted that the naira appreciated by 0.59 percent week-on-week at the official market, closing at N1,357.61/$1 during the review week. The parallel market held steady at N1,420.00/$1, reflecting relatively stable foreign exchange liquidity in the informal market segment.
Total FX inflows into the Nigerian Foreign Exchange Market increased significantly to $1.77 billion from $0.83 billion in the previous week. Domestic sources accounted for 63.44 percent of total inflows, driven primarily by exporters, which contributed 31.20 percent, and non-bank corporates, which accounted for 17.67 percent.
The development, according to the report, underscores the growing contribution of autonomous market participants to FX supply and points to improved liquidity conditions in the official market.
For Nigerian businesses, stronger official market activity and rising reserves mean greater confidence in the CBN’s ability to support the naira, even as the parallel market premium remains a watchpoint.