Naira Weakens as Foreign Investors Sell Stocks and Demand Dollars
By Aboki Forex —
The naira came under pressure at the Nigerian Foreign Exchange Market on Friday. Demand for the US dollar outpaced supply, causing the local currency to slip.
The naira traded between N1,363 and N1,370 to the dollar during the session. Analysts blamed the weakness on foreign portfolio investors. These investors sold their positions in the domestic stock market and converted the proceeds into dollars for repatriation.
The sell-off was driven by offshore investors who saw some stocks as overvalued after recent gains on the Nigerian Exchange. This triggered extra demand for foreign currency and weighed on the naira.
Data from the Central Bank of Nigeria showed some official market transactions at rates as high as N1,374 per dollar. The naira had earlier strengthened to N1,356 per dollar. Improved liquidity from foreign investors, exporters and non-bank firms helped. But those gains did not last.
Other major currencies also moved against the naira. The euro closed at N1,570.93. The British pound traded at N1,814.10.
Market participants noted the CBN did not step in with significant intervention sales. This may have stopped the naira from holding its early gains. Interbank trading was volatile. Daily turnover ranged between $39.99 million and $184.34 million, showing shifting market activity.
Despite the naira's weakness, Nigeria's external reserves kept rising. The CBN reported gross external reserves at $51.04 billion as of June 18, 2026. That is up from $50.96 billion a day earlier. The steady growth comes from crude oil exports, diaspora remittances and other forex sources.