By Boluwatife Oshadiya | July 21, 2026, 9:30 AM
Key Points
- The naira strengthened slightly to close at ₦1,380.11/$ at the official market
- Nigeria’s foreign reserves climbed to $51.92 billion, nearing the $52 billion mark
- Analysts expect the currency to remain broadly stable on sustained FX inflows and CBN interventions
Main Story
The Nigerian naira recorded a marginal gain at the Nigerian Foreign Exchange Market (NFEM) on Monday as the Central Bank of Nigeria’s (CBN) foreign reserve position edged closer to the $52 billion threshold, reinforcing confidence in the country’s external buffers.
Official market data showed the naira closed at ₦1,380.1093 per US dollar, improving slightly from ₦1,380.1847 at the start of trading. During the session, the exchange rate traded between ₦1,378.50/$ and ₦1,382.99/$.
The CBN also reported that interbank foreign exchange turnover declined to $266.23 million, down about eight percent from $287.83 million recorded previously. Total deals executed in the market fell to 68 from 106, reflecting softer trading activity despite continued stability in exchange rates.
The latest movement follows a relatively stable week for the local currency. Although the naira weakened by 0.04 percent week-on-week to close at ₦1,380.18/$, it recovered from an intra-week low of ₦1,383.08/$ as foreign exchange liquidity improved toward the end of the trading week.
The parallel market also reflected stronger sentiment, with the naira appreciating by 0.35 percent to ₦1,415/$ from ₦1,420/$ recorded a week earlier.
Fresh data from the CBN showed Nigeria’s gross external reserves increased to $51.92 billion as of July 16, 2026, extending the country’s reserve build-up. Market analysts expect reserves to exceed $52 billion this week, marking the highest level recorded since 2009.
What’s Being Said
The Central Bank of Nigeria’s latest reserve data indicates continued improvement in the country’s external position, supported by stronger foreign exchange inflows and sustained reserve accumulation.
Market analysts expect the naira to remain relatively stable in the near term, noting that improved reserves and the CBN’s regular interventions should continue to cushion demand pressures in the foreign exchange market.
What’s Next
- Analysts expect Nigeria’s gross foreign reserves to exceed $52 billion in the coming days.
- Investors will monitor upcoming NFEM trading volumes for signs of improving market liquidity.
- The market will continue to watch the CBN’s intervention strategy as foreign exchange demand remains elevated.
The Bottom Line: Nigeria’s expanding foreign reserves are providing stronger support for exchange rate stability despite moderating trading activity. Sustained reserve growth above $52 billion would further strengthen market confidence and reinforce the CBN’s ability to manage volatility in the foreign exchange market.
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