Naira gains to N1,337/$ as weekly FX turnover falls 49%
By Aboki Forex —
The naira strengthened to N1,337/$ at the Nigerian Foreign Exchange Market on Friday, August 28, extending its recent gains even as weekly foreign exchange turnover plunged sharply. Data from the Central Bank of Nigeria’s website shows the currency closed at N1,337/$, compared with N1,349.99/$ on August 24, representing a 0.96% appreciation over the week.
How the naira moved
The naira opened the week at N1,349.99/$ on August 24 before strengthening to N1,343/$ on August 26 and N1,336/$ on August 27. It closed at N1,337/$ on August 28, trading within a range of N1,335/$ to N1,350/$ during the reported sessions. In the parallel market, the naira appreciated to N1,403/$ on Friday from N1,407/$ on Thursday.
Turnover drops sharply
Weekly NFEM turnover dropped 48.7% week-on-week to $2.71 billion, from approximately $5.28 billion recorded between August 17 and 21. The week’s turnover was concentrated around August 26 and 27, with transactions worth about $913.76 million and $1.06 billion respectively. Turnover on August 24 stood at $731.18 million. The market was closed on Tuesday, August 25, due to a public holiday.
Reserves, oil, and CBN insights
The naira’s latest appreciation came as Nigeria’s external reserves crossed the $53 billion mark for the first time in more than 17 years, reaching $53.11 billion as of August 24, 2026. Higher reserves provide the Central Bank of Nigeria with a stronger external liquidity position and can improve market confidence.
Oil prices settled lower on Friday. Brent crude futures fell 39 cents, or 0.43%, to settle at $89.31 a barrel, while West Texas Intermediate declined 13 cents, or 0.16%, to $83.40 a barrel. For the week, Brent fell more than 5% and WTI declined by more than 4%.
CBN Governor Olayemi Cardoso dismissed claims that the apex bank is aggressively intervening to defend the naira, saying interventions now account for only about 1.2% to 1.3% of total FX turnover. He linked the improved FX market structure to recent reforms, including the FX Code, electronic trading platform, and the revised foreign exchange manual. He also said Nigeria has built sufficient economic buffers to withstand inflationary pressures arising from the ongoing conflict in the Middle East.
What it means for the naira and businesses
The stronger reserves and reduced reliance on official intervention suggest the recent naira gains are backed by improved market structure rather than short-term defence. For Nigerian businesses, a steadier exchange rate lowers uncertainty around import costs and pricing, and could support consumer confidence if the trend holds.