Naira Weakens Against USD, EUR, GBP on Squeezed FX Liquidity
The Nigerian naira pulled back against the US dollar (USD), Euro (EUR), British pound (GBP), and Japanese Yen in the official FX Market as demand for international payments outpaced liquidity.
The disequilibrium position triggered a 53-basis-point depreciation in the exchange rate amid a surge in interbank FX turnover, as reported by the Central Bank of Nigeria (CBN).
A daily FX update from the authority revealed that the official spot exchange rate dropped to N1350.4134 on Wednesday, down from N1343.3202 quoted the previous day.
Broadstreet FX analysts said transactions were executed between N1348 and N1353, as the market anticipates that the authority might slow the local currency’s rapid appreciation.
In the first half of 2026, the CBN mopped up US dollars at the official window to halt naira’s momentum following a fast appreciation – a position some market observers interpreted as a move to make Nigerian exports competitive in the global market.
At the Nigerian foreign exchange market, interbank FX turnover increased to $370.980 million, according to a CBN update, up about 2% from $364.709 million reported on Tuesday.
On the other hand, the number of interbank FX deals declined to 100, from 108 the previous day, reflecting a moderate slowdown in activities of financial institutions acting as market makers.
Euro, British Pound Exchange Rate
The Naira also weakened against the British Pound and Euro at the FX window, losing 1.09% and 1.16% respectively, AIICO Capital Limited said in a report, noting that both pairs held flat in the parallel market.
The naira traded at N1573.7290 to the Euro, N1839.1280 to the pound sterling, and N8.5190 to the Japanese Yen, according to data from the Apex Bank.
Overall, the market continues to experience relative stability, supported by ongoing refinements in monetary and fiscal policy, AIICO Capital Limited said in a note.
The investment firm expects the naira to remain broadly stable in the near term, supported by improving FX liquidity. However, persistent dollar demand and the gap between the official and parallel markets could limit further appreciation.
Analysts maintained that the forex market’s direction will remain dependent on FX inflows, reserve accumulation, and demand pressures.
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