The Nigerian naira closed at N1,362.2064 per US dollar in the official foreign exchange market on Monday, July 28, 2026, as the Central Bank of Nigeria (CBN) intensified interventions to support the local currency. Data from the Nigerian Foreign Exchange Market (NFEM) showed the naira opened at N1,362.0866 per dollar, closing with a marginal decline but reflecting overall stability buoyed by increased dollar supply from the apex bank.
Naira Records Weekly Appreciation
Over the previous trading week, the naira strengthened by 1.31% at the official market, closing at N1,362.09 per dollar on Friday compared with N1,380.18 a week earlier. The improvement followed renewed CBN interventions that injected significant foreign exchange liquidity into the market to alleviate pressure from persistent dollar demand. According to data released by the apex bank, eligible foreign exchange transactions were conducted within a range of N1,359 to N1,365.50 per dollar during the week.
Broadstreet analysts noted that the movement in the spot exchange rate indicates relative stability in the official market, driven by the CBN’s interventions and steady inflows from foreign investors and other market participants. The analysts added that the central bank's willingness to supply dollars has helped narrow the spread between official and parallel market rates.
Interbank FX Turnover Drops Sharply
Despite the naira’s improved performance, activity in the interbank foreign exchange market weakened considerably. Interbank FX turnover closed at $39.59 million on Monday, representing a sharp decline of approximately 56% from the $89.08 million recorded at the end of trading on Friday, according to a report by MarketForces Africa. This reduction indicates lower transaction volumes among financial institutions, even as the official exchange rate remained largely stable.
Market analysts attributed the reduced turnover to cautious trading by banks and authorised dealers as they monitor the direction of the naira and the CBN’s liquidity management strategy. Some dealers may be holding back to assess the sustainability of the central bank's intervention efforts.
CBN Emerges as Largest Source of Dollar Inflows
A report by Coronation Merchant Bank Limited revealed that total foreign exchange inflows into the Nigerian market reached $1.01 billion during the week. The CBN accounted for the largest share, contributing $500 million, or 49.36% of total inflows. Foreign portfolio investors followed with $260 million, representing 26.03%, while exporters contributed $140 million, or 13.85%.
Non-bank corporates supplied $90 million, accounting for 9.02% of total inflows. Other corporates contributed approximately $10 million, while inflows from individuals and foreign direct investors remained marginal. The dominance of CBN in dollar supply underscores the central bank's pivotal role in maintaining exchange rate stability.
External Reserves Provide Additional Support
Nigeria’s gross external reserves recorded a modest improvement, rising by 0.17% to $52.03 billion from $51.94 billion within five days. Coronation Merchant Bank noted that the increase, though modest, strengthens the CBN’s capacity to sustain its foreign exchange interventions in the near term. The reserves level provides a buffer against external shocks and supports investor confidence.
Analysts expect the naira to trade within a narrow range in the coming days, supported by continued FX inflows and the CBN’s willingness to supply dollars to the market. However, sustained demand for foreign currency remains a key risk. The strength of future interventions and inflows will determine whether the naira can maintain its recent gains.
Market Outlook and Risks
Legit.ng previously reported that the naira maintained stability against the US dollar on Monday, July 13, 2026, despite global economic pressures strengthening the greenback. Latest CBN data showed the local currency closed at N1,379.6504 per dollar, almost unchanged from its opening rate, reflecting calm trading at the NFEM. The relatively stable exchange rate came as demand for foreign currency remained subdued, while available dollar supply was sufficient to meet market needs.
Going forward, the trajectory of the naira will hinge on the CBN's ability to continue its intervention strategy and the inflow of foreign capital. With external reserves edging up and the central bank accounting for nearly half of total dollar inflows, the near-term outlook appears stable, but analysts caution that any shift in policy or external conditions could quickly alter the balance.
