The Nigerian naira extended its gains in the official foreign exchange market on Wednesday, July 1, 2026, appreciating by N7.27 against the United States dollar. The appreciation, driven by increased dollar inflows and reduced demand for the greenback, saw the naira close at N1,372.41 per dollar, according to data from the Nigerian Foreign Exchange Market (NAFEM). This represents a 0.39% gain from the previous day's rate of N1,379.68 per dollar.
Naira Strengthens Against Major Currencies
The local currency also recorded gains against other major international currencies. Against the British pound sterling, the naira appreciated by N3.32 to close at N1,821.73 per pound, up from N1,825.05 per pound. Similarly, it gained N7.61 against the euro, settling at N1,565.37 per euro, compared with the previous rate of N1,572.98 per euro.
However, in the parallel market, the naira traded flat, with the US dollar exchanging at N1,395 per dollar. The exchange rate at GTBank's FX desk also remained unchanged at N1,389 per dollar.
Market Dynamics Supporting Naira
Market data revealed a significant drop in interbank foreign exchange deals, which fell to 91 from 166 in the previous session. This decline indicates weaker demand for US dollars by customers, reducing pressure on the official market and supporting the naira's appreciation. Additionally, Nigeria received fresh foreign exchange inflows during the first half of 2026, boosting the country's gross external reserves to $51.46 billion by the end of June. This stronger reserve position is expected to enhance the Central Bank of Nigeria's ability to support liquidity in the foreign exchange market.
Broader Economic Context
The naira's recent gains come amid ongoing efforts by the federal government to strengthen the currency and reduce reliance on the US dollar. The government has announced plans to develop a pan-African payment card that would enable direct transfers between African currencies, eliminating the need for intermediary currencies like the US dollar. Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed the plan during a meeting with a Mastercard delegation, stating that Africa has the opportunity to revolutionise its payment infrastructure to enable direct settlement between its currencies and reduce transaction costs across the continent.
Other Exchange Rates
The Central Bank of Nigeria also released exchange rates for other currencies on the official market: CFA franc at N2.40, Chinese Yuan (Renminbi) at N201.98, Danish Krone at N209.40, Euro at N1,565.37, Japanese Yen at N8.45, Saudi Riyal at N365.45, South African Rand at N83.80, SDR at N1,860.65, Swiss Franc at N1,696.42, British Pound Sterling at N1,821.73, US Dollar at N1,372.41, WAUA at N1,870.31, and UAE Dirham at N373.67.
