The Nigerian naira closed at N1,368.22 per US dollar in the official Nigerian Foreign Exchange Market (NFEM) on Friday, July 31, 2026, marking a N1.49 (0.11%) depreciation from the previous day's rate of N1,366.73/$1. Renewed demand for foreign currency continued to pressure the local unit despite efforts by the Central Bank of Nigeria (CBN) to improve liquidity.
Data from the CBN and the NFEM showed that the naira also weakened against other major currencies. The British pound rose by N3.50 to N1,837.79, while the euro gained 90 kobo to trade at N1,573.87. The Swiss Franc was quoted at N1,692.18, and the Chinese Yuan (Renminbi) closed at N202.56, according to official rates.
Parallel market rate rises to N1,405 per dollar
In the parallel market, the naira lost N5 to close at N1,405 per dollar, up from N1,400 on Thursday. GTBank's retail foreign exchange desk also adjusted its rate upward by N4 to N1,374 per dollar. The widening gap between the official and parallel rates -- now roughly N36.77 -- underscores the persistent demand pressure facing the naira across both market segments.
The sustained demand suggests that economic agents are continuing to seek dollars for imports, school fees, and other obligations, even as the central bank attempts to stabilise the market through interventions and policy reforms.
FX turnover edges higher, reserves dip slightly
Official trading activity showed a modest improvement on Friday, with interbank foreign exchange turnover rising by 0.97% to $58.99 million, compared with $58.42 million in the prior session, according to CBN figures. However, the number of authorised deals completed fell to 69, down from 71, indicating that higher turnover was driven by a few large trades rather than broader participation.
Nigeria's external reserves continued their gradual decline, easing to $51.922 billion from $51.938 billion, based on the latest CBN data. A shrinking reserves buffer can limit the central bank's ability to defend the naira if demand intensifies, especially with oil revenues and foreign portfolio inflows under pressure.
CBN official exchange rates for Friday, July 31, 2026
At the close of trading, the Central Bank of Nigeria quoted the following exchange rates for major currencies:
- US Dollar: N1,368.22
- Pounds Sterling: N1,837.79
- Euro: N1,573.87
- Special Drawing Rights (SDR): N1,860.45
- West African Unit of Account (WAUA): N1,852.30
- Swiss Franc: N1,692.18
- UAE Dirham: N372.27
- Saudi Riyal: N364.37
- Chinese Yuan (Renminbi): N202.56
- Danish Krona: N210.52
- South African Rand: N83.14
- Japanese Yen: N8.53
- CFA Franc: N2.37
CBN insists naira is market-driven
The persistent depreciation comes as the central bank maintains that the recent stability in the currency is the result of market reforms and not artificial support. CBN Governor Olayemi Cardoso made this point while briefing journalists in Abuja after the Monetary Policy Committee (MPC) meeting.
According to Cardoso, the foreign exchange market has become more transparent and market-driven following the reforms implemented over the past two years. The CBN governor stressed that the naira is not being artificially supported, implying that the exchange rate reflects underlying supply and demand dynamics.
The latest figures indicate that demand for foreign exchange remains elevated, while official reserves are slowly eroding. Unless supply improves significantly through higher oil output, foreign investment, or diaspora inflows, the naira may continue to face depreciation pressure in both the official and parallel markets.
