Nigeria's foreign exchange market recorded $46.37 billion in total turnover across just four months, according to data published by the Central Bank of Nigeria (CBN). The figure reflects deepening activity in the Nigeria Foreign Exchange Market (NFEM) between March and June 2026.
Of the combined figure, the NFEM window contributed $38.61 billion, while interbank transactions accounted for the remaining $7.76 billion. Deal volumes were equally significant, with 22,282 transactions executed through the NFEM compared with 8,021 in the interbank segment over the same period.
Naira Exchange Rate Holds Steady Amid High Volumes
Despite the high trading volumes, exchange rate movement remained contained. At the official market, the naira closed June at N1,379.68 per dollar, a marginal slide of N1.66 from the N1,378.02 rate recorded at the start of March. In the parallel market, the currency lost N22 over the four months, closing at N1,397 per dollar in June from N1,375 in March. Notably, the gap between official and parallel market rates narrowed sharply, reducing the arbitrage opportunities that had plagued the market ahead of the CBN's reform programme.
Analysts Note Mild Pressure in June
Analysts at Quest Merchant Bank said the naira came under mild pressure in June, specifically closing at N1,379 per dollar, a 0.3% monthly decline from N1,376 in May. The bank attributed this to a 26% month-on-month drop in total foreign exchange supply to $2.8 billion, as inflows from both domestic and foreign participants moderated. Quest Merchant Bank further disclosed that a $1.3 billion Open Market Operations private placement matured during June and was not rolled over, triggering a significant outflow that tightened dollar liquidity. The parallel market felt the strain too, with the naira depreciating 1.1% month-on-month to N1,405 per dollar amid sustained demand and constrained supply outside the official market, BusinessDay reports.
CBN Intervention and Outlook
To cushion the liquidity squeeze, the CBN injected $320 million into the market. The intervention proved effective in containing volatility, with the naira recording an average appreciation to N1,368.14 per dollar from N1,370.16 the previous month. Looking ahead, Quest Merchant Bank analysts said they expect the naira to trade within a relatively narrow band, supported by sustained liquidity and strong external reserve buffers. The analysts noted: "However, we anticipate persistent demand pressures to remain elevated, underpinned by Nigeria's structural demand for foreign exchange."
The market's improved performance follows revised NFEM operational guidelines issued by the CBN in November 2024, which consolidated all official foreign exchange windows and introduced stricter governance requirements, including annual attestation to the Nigeria FX Code of Ethics by bank boards and chief executives.
Naira Ranks High Among Africa's Best-Performing Currencies
Earlier, Legit.ng reported that Nigeria's currency, the naira, has been ranked as the second-best-performing currency in Africa during the first half of 2026, defying a difficult economic environment that saw most currencies across the continent lose value against the US dollar. According to data compiled by real-time trading platform African Markets, only four of the 17 major African currencies tracked appreciated between January and the end of June, while 13 depreciated.
