Naira Softens on Weak FX Supply, Foreign Reserves Top $51bn
The naira softened against the dominant US dollar at the Nigerian Foreign Exchange Market (NFEM) as FX supply fell short of demand.
Broadstreet analysts told MarketForces Africa that official spot rate depreciation was driven by foreign investors exiting positions in the stock market.
MarketForces Africa gathered that there have been some naira-to-dollar conversions as offshore investors dump relatively overvalued stocks on the local bourse.
This fueled US dollar demand, pushing the euro to N1570.9281 and the British Pound to N1814.0952 at the close of the trading session on Friday.
The local unit fluctuated between N1363 and N1370 in the absence of significant FX intervention support from the Central Bank of Nigeria (CBN).
Analysis of CBN data showed that the official rate peaked at N1374 per US dollar for some transactions executed at the NFEM window on Friday.
During the trading session, the naira appreciated to N1356 following improved FX liquidity, aided by inflows from foreign investors, exporters and non-bank corporates, among others.
The market recorded interbank FX turnover fluctuations, ranging from $39.987 million to $184.337 million, according to data released by the CBN.
Nigeria’s foreign reserves top $51 billion due to successive inflows from oil sales, remittances and other sources. This boosted net FX positions and the CBN’s ability to defend the naira across markets.
Updated CBN data revealed that gross external reserves climbed to $51.035 billion as of June 18, 2026, from $50.962 billion the previous day, sustaining fresh accretion that started during the month.
A slew of analysts said that reduced oil imports and elevated crude prices in the global commodity market helped growth in external reserves. The US and Iran deal has, however, eased pressure on the energy crisis sharply.
Oil prices fell this week after the US and Iran announced a preliminary agreement to end the conflict and reopen the Strait of Hormuz, easing concerns over disruptions to global oil supplies.
However, Brent crude oil prices rose Friday after talks between the U.S. and Iran in Switzerland were abruptly called off, underscoring lingering uncertainty over efforts to turn an interim agreement into a lasting peace settlement.
Brent crude futures, the international benchmark, gained 0.9% to close at $80.57 per barrel. West Texas Intermediate futures traded 1.23% higher at $77.54 earlier Friday.
Prices briefly turned lower after Israel and Iran-backed Hezbollah agreed to a ceasefire. Switzerland’s foreign ministry said U.S.-Iran talks scheduled to take place at Bürgenstock on Friday would not proceed as planned.
Precious metals were mixed this week, as gold, silver and platinum fell as investors reduced safe-haven positions following easing geopolitical tensions, while lead, tin and zinc rose on supply concerns and steady industrial demand.
