Naira Slips at Official Market as FX Turnover Plunges 56% to $39.6 Million

The Naira opened the week marginally weaker against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX), depreciating by 12 kobo or 0.01 per cent on Monday, July 27, to trade at N1,362.21/$1 from N1,362.09/$1 on Friday. The slight decline came as interbank FX turnover tumbled about 56 per cent to $39.587 million, compared with $89.082 million recorded at the end of the previous week.

Naira Movements Across Markets

In the same official window, the Naira lost 43 kobo against the Pound Sterling to close at N1,814.05/£1, down from N1,813.62/£1. Against the Euro, the local currency slid by N1.09 to N1,550.19/€1, compared with N1,549.10/€1 in the prior session.

At the GTBank forex desk, however, the Naira strengthened against the greenback by N7 to sell at N1,372/$1, versus N1,379/$1 previously. The parallel market remained stable at N1,400/$1.

What Is Keeping the Naira Firm

Despite persistent strength in the US Dollar globally, the Naira has held relatively steady. Analysts attribute this resilience to market liquidity underpinned by Nigeria’s foreign reserves buffer of $52 billion. That cushion makes it easier for banks, traders, and businesses to transact in the FX market without triggering sharp volatility from sudden demand.

Another factor is the Dangote Refinery’s decision to resume selling petrol in Naira. The company said the move was driven by the need to stabilise the market, amid claims that fuel importers were withholding supplies in anticipation of higher prices. This has helped reduce pressure that could otherwise come from foreign-currency purchases by fuel importers.

Crypto Market Dips Ahead of US Fed Decision

In the cryptocurrency market, most major tokens fell as the US Senate delayed action on the CLARITY Act to focus on a Russia sanctions bill. Any vote on crypto regulatory legislation is now expected next week, before the August 8 recess. Analysts say Bitcoin and other coins tend to move with stocks when macro and interest-rate stress is high, and they expect volatility across asset classes around the Federal Reserve’s rate decision on Wednesday and key US data on Thursday.

Cardano (ADA) dropped 6.0 per cent to $0.1556. Ripple (XRP) depreciated by 4.4 per cent to $1.05. Solana (SOL) fell 4.0 per cent to $73.27. Ethereum (ETH) slid 3.9 per cent to $1,884.11. Dogecoin (DOGE) declined 3.8 per cent to $0.0699. Bitcoin (BTC) crashed 3.0 per cent to $63,420.37. TRON (TRX) retreated 2.3 per cent to $0.3241. Binance Coin (BNB) slumped 1.6 per cent to $565.57. The stablecoins US Dollar Tether (USDT) and US Dollar Coin (USDC) traded flat at $1.00 each.

What This Means for the Naira and Nigerian Businesses

The sharp drop in FX turnover signals that activity in the official market is thinning, even as the Naira holds relatively steady. A sustained fall in turnover could eventually pressure the exchange rate if demand picks up without matching supply. However, the foreign reserves buffer and the Dangote Refinery’s Naira-based petrol sales continue to provide a cushion, reducing the need for heavy dollar purchases by fuel importers. For Nigerian businesses that rely on imports, the stable parallel market rate offers some predictability, but they will be watching the Fed’s decision this week for any spillover effects on emerging-market currencies.