The Nigerian naira experienced a mixed performance against the US dollar on Thursday, July 3, 2026, as it depreciated in the parallel market but appreciated in the official Nigerian Autonomous Foreign Exchange Market (NAFEM).
Black Market Depreciation
In the black market, Bureau de Change (BDC) operators reported a decline in the naira's value against the dollar. Abdullahi, a BDC trader, told Legit.ng: 'The dollar buying rate has increased to N1,396 from N1,394 on July 1, while the selling rate rose to N1,406 from N1,404.' The euro and British pound sterling also saw higher rates, with the euro selling at N1,587 (up from N1,583) and the pound at N1,870 (up from N1,865).
Official Market Gains
Conversely, in the official NAFEM window, the naira strengthened by N2.26, or 0.16%, to close at N1,370.15/$1, compared to N1,372.41/$1 the previous day. However, the naira weakened against the British pound sterling, losing N10.44 to settle at N1,832.17/£1, and depreciated against the euro by N2.91 to close at N1,568.28/€1.
Market Analysts' Outlook
Market analysts expressed cautious optimism for the naira, noting that pressure from half-year profit-taking is easing while the Central Bank of Nigeria (CBN) continues to support market stability through policy measures. Data from the CBN showed interbank foreign exchange turnover declined to $85.52 million across 94 deals, down from $90.30 million in the previous session, and sharply lower than the intra-week high of $269.90 million. Despite slower CBN interventions, analysts expect the naira to remain range-bound for the rest of 2026, supported by tighter monetary policy and improved market confidence.
Exchange Rate Snapshot
Below are selected exchange rates as of July 3, 2026:
CFA: N2.38
Chinese Yuan: N201.80
Danish Krone: N209.77
Euro: N1,568.28
Japanese Yen: N8.51
Saudi Riyal: N364.91
South African Rand: N84.32
SDR: N1,860.16
Swiss Franc: N1,705.44
British Pound Sterling: N1,832.17
US Dollar: N1,370.15
WAUA: N1,859.98
UAE Dirham: N373.05
CBN Relaxes Dollar Account Rules
In related news, the CBN has introduced sweeping changes to its foreign exchange framework, granting Nigerians greater freedom to access and use funds in domiciliary accounts. The new Foreign Exchange Manual 2026 reverses several COVID-era restrictions, signaling a shift toward a more liberalized FX market. This move is expected to boost confidence among individual savers, diaspora investors, and businesses.
