Nigerian Naira Ticks as Foreign Reserves Near $52 Billion
The naira experienced a soft rally that pushed the local currency value upward slightly as the data from the Central Bank of Nigeria (CBN) showed foreign reserves approaching the $52 billion mark.
The local currency has been hovering above N1380 per dollar in the last five trading sessions due to tight US dollar inflows at the Nigerian Foreign Exchange Market (NFEM).
Daily FX data released at the official window showed the spot rate closed at N1380.1093 per US dollar, rising from N1380.1847 quoted at the beginning of the trading session.
FX rates hovered between N1378.5000 and N1382.9900 in the official window as financial institutions’ intermarket FX activities and turnover eased on Monday.
The CBN disclosed that NFEN interbank FX turnover settled at $266.227 million, about 8% lower than the previous close of $287.832 million. Also, the number of deals at the interbank FX market declined to 68 from 106, according to an official release from the authority.
The Naira depreciated marginally at the NFEM window last week, weakening by 0.04% w/w to close at N1,380.18/US$1, compared with N1,379.62/US$1 in the previous week.
FX movement reflected some early pressure on the domestic currency, with the Naira weakening over the first two trading sessions to an intra-week low of N1,383.08/US$1.
However, the currency recovered gradually over the remainder of the week, retracing part of its losses and ultimately closing only marginally weaker than the previous week’s level.
In the parallel market, the currency appreciated by 0.35% to close at N1,415.00/US$1 from N1420/US$1 as recorded in the previous week.
Updated data from the CBN showed Nigeria’s gross foreign exchange reserves increased to US$51.92 billion as of July 16, 2026, reflecting continued improvements in the country’s external position.
A slew of analysts predict further increases will lift the gross balance above $52 billion this week, the highest seen since 2009.
The naira is expected to trade within a narrow range, supported by sustained foreign exchange inflows and the CBN’s continued market interventions, helping to cushion pressure from sustained FX demand.
