The Nigerian naira appreciated against the US dollar in both the official and parallel foreign exchange markets on Wednesday, July 22, 2026, after improved FX liquidity boosted supply. The local currency also strengthened against the British pound and the euro as investor inflows lifted market turnover by almost 30%.
Data from the Nigerian Foreign Exchange Market (NFEM) showed the naira appreciated by N5.68, or 0.41%, to close at N1,369.63/$1, compared with N1,375.31/$1 recorded in the previous trading session. The local currency also gained against other major currencies: it appreciated by N8.01 against the British pound to trade at N1,833.12/£1, down from N1,841.13/£1, and strengthened against the euro by N4.75 to close at N1,563.03/€1, compared with N1,567.78/€1 a day earlier.
Naira Gains in Black Market
The naira also recorded gains in the parallel market, appreciating by N5 against the US dollar to trade at N1,400/$1, compared with N1,405/$1 on Tuesday. Similarly, at the GTBank FX desk, the local currency gained N5, with the exchange rate improving to N1,383/$1 from N1,388/$1 in the previous session.
The latest appreciation followed improved dollar liquidity in the market, supported by stronger inflows from foreign portfolio investors, exporters and non-bank corporates. As a result, total turnover at the official FX market rose by 29% to $416.42 million, up from $322.66 million recorded in the previous trading session. The number of completed deals also increased significantly to 198, compared with 110 on Tuesday, indicating stronger market participation and improved liquidity.
Analysts See Stability Ahead
Analysts said the foreign exchange market could remain stable in the near term, supported by Nigeria's gross external reserves, which have risen above $52 billion. The Central Bank of Nigeria (CBN) also released selling rates for major currencies, including: CFA Franc at N2.39, Chinese Yuan at N202.21, Danish Krone at N209.05, Euro at N1,563.03, Japanese Yen at N8.40, Saudi Riyal at N364.85, South African Rand at N83.40, SDR at N1,859.14, Swiss Franc at N1,685.08, Pound Sterling at N1,833.12, US Dollar at N1,369.63, WAUA at N1,867.90, and UAE Dirham at N372.91.
Related Development: Tanzania Changes Dollar Use Rule
In a related development, the Bank of Tanzania introduced new foreign exchange regulations prohibiting the use of foreign currencies, including the US dollar, for domestic payments and transactions. Under the directive, businesses and individuals are required to quote prices and accept payments only in Tanzanian shillings for goods and services offered within the country. In a public notice signed by the Governor of the Bank of Tanzania, Emmanuel M. Tutuba, the apex bank said the measure was aimed at reinforcing the use of the local currency.
