The Nigerian naira weakened against the United States dollar in both the official and parallel foreign exchange markets on Wednesday, July 8, 2026, as demand for foreign currency to settle international obligations remained elevated.
Data from the Central Bank of Nigeria (CBN) showed that the Nigerian Foreign Exchange Market (NFEM) closed at N1,379.07 per dollar, down from N1,375.75 per dollar on Tuesday. This represents a depreciation of N3.32 or 0.24% in a single trading session.
Interbank Trading Volume Surges
Despite the naira's decline against the dollar, interbank foreign exchange turnover surged by approximately 399% to $208.09 million, compared to just $41.74 million on Tuesday. The number of completed deals also rose sharply to 150 from 47 in the previous session, indicating increased market activity.
Market participants attributed the naira's weakness to sustained demand for foreign currency to meet international payment obligations. However, overall market liquidity remained sufficient to accommodate the increased trading volume.
Naira Gains Against Pound and Euro
While the naira lost ground against the dollar, it appreciated against other major currencies. The naira gained 93 kobo against the British pound, closing at N1,840.64 per pound compared to N1,841.57 the previous day. Against the euro, the naira strengthened by N1.31 to close at N1,561.38, up from N1,562.69 on Tuesday.
In the parallel market, the dollar exchanged at N1,400 on Wednesday, N5 higher than the N1,395 recorded on Tuesday. At the GTBank forex counter, the rate remained unchanged at N1,381 per dollar.
External Reserves Exceed CBN Target
Nigeria's external reserves have risen to $51.06 billion, surpassing the CBN's year-end target of $51.04 billion. The reserves have gained 32.62% compared to $38.50 billion in the same period in 2025. This provides the central bank with a buffer to support the naira and settle international obligations.
According to Dave Ibemere, Senior Business Editor at Legit.ng, market activity in the interbank FX market also improved, with a 59.32% increase in deals executed to 94 on Monday, compared to 59 recorded on Friday.
Naira Performance Against Other Currencies
Below is a snapshot of the naira's performance against other major currencies in the official NFEM window, based on the latest CBN data:
- CFA: N2.38
- Yuan/Renminbi: N202.76
- Danish Krona: N210.26
- Euro: N1,572.00
- Japanese Yen: N8.48
- Saudi Riyal: N367.24
- South African Rand: N84.08
- SDR: N1,873.52
- Swiss Franc: N1,704.45
- Pounds Sterling: N1,840.64
- US Dollar: N1,379.07
- WAUA: N1,859.53
- UAE Dirham: N375.45
FX analysts remain optimistic about naira stability in the second half of 2026, pointing to ongoing market reforms and stronger external reserves as key factors supporting the currency.
