Naira gains 0.84% to N1,346.90/$ as weekly FX turnover jumps to $4.52 billion

The naira strengthened by 0.84% against the US dollar at the Nigerian Foreign Exchange Market (NAFEM) this week, closing at N1,346.90/$ on Friday from N1,358.25/$ recorded on August 14. CBN data released on Friday showed the currency gained N11.35 during the week.

Weekly FX turnover more than doubled to about $4.52 billion between Monday and Friday, up from approximately $2.18 billion in the previous trading week of August 10 to 14. That is a 107.6% increase.

Market data

CBN data showed the naira traded between N1,342/$ and N1,348/$ on Friday, with a weighted average rate of N1,346.49/$ and a simple average of N1,346.07/$. The currency opened the week at N1,350/$ on August 17 and closed at N1,346.90/$ by Friday.

It traded as high as N1,361/$ and as low as N1,347/$ on Monday before closing at N1,350/$. The naira closed at N1,350.70/$ on August 18, N1,351/$ on August 19 and N1,347.50/$ on August 20. Friday’s close was the strongest level recorded during the week.

NAFEM turnover stood at $1.41 billion on August 17, $1.08 billion on August 18, $1.11 billion on August 19 and $920.46 million on August 20. As of 6:15 pm on Friday, August 21, the CBN had not provided the NAFEM total turnover for the day.

By comparison, daily turnover in the previous week ranged from $185 million to $607.47 million. August 11 recorded the lowest turnover at $185 million, while August 12 posted the highest at $607.47 million.

Interbank transactions also saw substantial activity, with turnover of $437.53 million on August 17, $364.71 million on August 18, $370.98 million on August 19, $371.79 million on August 20 and $159.73 million on Friday.

What analysts say

Analysts said the sharp rebound in NAFEM turnover points to improved liquidity and stronger participation in the official foreign exchange market. They cautioned, however, that the surge may have been driven by large transactions and should not yet be read as a sustained shift in market conditions.

Dr Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), said the increase could have been driven by large transactions involving major corporate users of foreign exchange. “I think it may be due to some big companies who have made huge transactions which can make a whole lot of difference,” he said.

Yusuf identified large importers of raw materials, machinery and other inputs as possible contributors to the spike. “Imagine, for instance, maybe Dangote goes into the market to import crude. You can imagine the amount that he will make,” he said.

He added: “My own guess is that this may be coming from some of the big consumers of forex, either in terms of their raw materials or major import of machinery. It could also be government projects which may require some foreign inputs.”

The explanation matters because a sharp increase in turnover does not automatically mean forex demand and supply have risen uniformly. A small number of large transactions can significantly move daily and weekly figures.

External reserves position

The latest activity follows a broader improvement in Nigeria’s external position. The country’s external reserves rose to $52.02 billion on July 20, 2026, their highest level since January 2009. That figure is also above the CBN’s December 2025 projection of $51.04 billion for the full year 2026.

The apex bank had attributed its outlook to stronger oil earnings, FX market reforms and improved external inflows. For the naira, stronger official market activity and rising reserves could support stability, but the surge in turnover still needs to be sustained before it can be called a trend.