Naira hits five-month high of N1,343.32/$ on strong dollar liquidity
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, lifted by increased market activity and rising external reserves. Data from the Central Bank of Nigeria (CBN) showed the naira strengthened by N6.22, or 0.46 percent, from the N1,349.54 rate 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.
Turnover and deals in the FX market
Market activity at the NFEM window increased sharply, although figures for deals and turnover on Tuesday were not available at the time of reporting. On Monday, total turnover at the NFEM window surged by 301.18 percent to $1.41 billion, compared with $352.34 million recorded on Friday. The number of deals also rose from 315 on Friday to 394 on Monday.
At the interbank segment, total turnover declined by 16.64 percent to $364.71 million on Tuesday from $437.53 million on Monday. The number of deals dropped by 39.33 percent, from 178 on Monday to 108 on Tuesday.
External reserves and FX inflows
Nigeria’s external reserves, which give the CBN the firepower to defend the naira and meet external obligations, rose to $52.32 billion as of August 17, 2026. That represents a 27.73 percent increase from the $40.96 billion recorded on August 18, 2025, according to CBN data.
A report by Coronation Merchant Bank noted that at the official market, the naira appreciated by 0.59 percent week-on-week, 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 segment.
Total FX inflows into the NFEM 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 report said this underscores the growing contribution of autonomous market participants to FX supply and points to improved liquidity conditions in the official market.
For the naira, the sustained increase in external reserves and official market liquidity supports the CBN’s ability to stabilise the currency. However, the wider parallel market premium suggests that demand pressures remain outside the official window.