Naira Dips as Interbank Turnover Eases, FX Reserves Rise
The naira dipped slightly against the US dollar at the official window on Monday, with data showing a sustained increase in the country’s foreign reserves.
The local currency closed at N1346.9676 per dollar at the Nigerian foreign exchange market (NFEM), from N1346.4919 per greenback last week.
Transactions were executed between N1345 and N1350 at the NFEM window, with trading data indicating FX liquidity was tighter than at the previous close.
At the NFEM window, interbank FX turnover moderated slightly to $152.592 million, down by 4.4% from $159.732 million posted at Friday’s close.
Interbank FX transactions at the NFEM window fell to 144 from 294 the previous day, indicating a sharp slowdown in financial institutions’ activity.
Meanwhile, the local currency appreciated by 0.36% in the parallel market, settling at ₦1,400 as FX demand at the informal currency segment eased.
Against the British Pound, the Naira depreciated by 0.04% at NFEM to ₦1,837.54/£ and by 0.26% in the parallel market to ₦1,895.00/£.
The Naira appreciated by 0.10% against the Euro, closing at ₦1,571.52/€, while depreciating by 0.31% in the parallel market to ₦1,595.00/€.
Nigeria’s gross external reserves increased by about $174.48 million from $52.66 billion to $52.83 billion on 21 July 2026, as reported by the Apex Bank.
Overall, the forex market continues to show relative stability, supported by ongoing refinements in monetary and fiscal policy.
“We expect that the current stability experienced at the FX market will remain in the interim as the Central Bank of Nigeria (CBN) further refines existing policies in line with fiscal steps taken by the FGN to ensure liquidity within the space”, AIICO Capital said in a note.
Gold pared earlier gains on Monday afternoon but remained around $4,640/oz, its highest level since May 14, as technical buying supported a rally fueled by a weaker dollar and the US Treasury’s recent buyback announcement.
Reduced longer-term yields and expectations of higher deficit spending further boosted safe-haven demand ahead of key US economic data and Fed commentary.
Brent crude oil extended losses, trading below $92/bbl on Monday after US Treasury Secretary Scott Bessent announced plans to isolate Iran through expanded secondary sanctions targeting entities and individuals doing business with the country.
Investors remain focused on potential supply disruptions, though oil flows through the Strait of Hormuz continue relatively strong despite elevated geopolitical risks.
Gold should stay supported near recent highs on fiscal and yield concerns, though a hawkish Fed could cap gains. Brent is likely to remain volatile amid US–Iran sanctions and developments surrounding the Strait of Hormuz. #Naira Dips as Interbank Turnover Eases, FX Reserves Rise# Naira Closed at N1,346 as Gross External Reserves Rise to $52.657bn
