The naira extended its recent recovery last week, closing at N1,346.49 per dollar in the official market after gaining N11.11 across five trading sessions, according to data from the Central Bank of Nigeria (CBN).
The week-on-week improvement of 0.83 per cent was driven largely by stronger dollar supply from foreign investors, exporters, and non-bank corporate entities, which helped ease pressure on the domestic currency.
Friday Trading Details
On Friday, August 22, the naira edged up a further N1.14, or 0.08 per cent, in the Nigerian Foreign Exchange Market (NFEM), settling at N1,346.49 per dollar compared with N1,347.63 the previous day.
The gain came as demand for foreign exchange cooled, with CBN data showing that interbank FX turnover fell sharply by 132.8% to $159.7 million from $371.8 million, while the number of deals dropped to 109 from 134.
Naira Performance Across Markets
Beyond the dollar, the naira also gained ground against other major currencies. It rose N1.95 against the pound sterling in the official window, closing at N1,836.75 per pound, and gained N1.86 against the euro to trade at N1,573.11.
At the GTBank forex desk, the local currency strengthened by N3 against the dollar to finish at N1,355, though it remained flat at N1,390 per dollar in the parallel market.
The official parallel market also showed modest improvement, with the naira closing at N1,400.61 per dollar amid broadly balanced demand and supply conditions.
External Reserves and Outlook
Nigeria's gross external reserves climbed 0.65 per cent to $52.657 billion during the period, reinforcing the country's external liquidity buffer and underpinning confidence in the currency's near-term outlook.
Traders expect the naira to remain broadly stable in the sessions ahead, anchored by continued inflows from offshore investors.
Some market participants have projected a rate of around N1,350 per dollar by the close of 2026, reflecting growing optimism about the currency's trajectory as liquidity conditions improve.
Reserves at Highest Level Since 2009
Similarly, Legit.ng reported that Nigeria’s external reserves are at their highest level since 2009, reaching almost $51 billion despite the naira's slight depreciation in some segments of the foreign exchange market due to weaker dollar inflows.
The Central Bank of Nigeria data showed the country’s foreign reserves increased to $50.96 billion as of June 17, 2026, from $37.74 billion recorded in the same period last year - an increase of $13.22 billion or 35.03%.
The current level represents the highest in over 15 years, since 2009.
