By Boluwatife Oshadiya | July 29, 2026
Key Points
- The naira weakened to ₦1,363.70 per US dollar at the official market
- Nigeria’s foreign reserves declined to $51.964 billion after recent CBN FX interventions
- Interbank foreign exchange turnover surged 160% as demand for dollars increased
Main Story
The naira weakened marginally against the United States dollar on Tuesday as stronger demand for foreign exchange coincided with a decline in Nigeria’s external reserves.
Data published by the Central Bank of Nigeria (CBN) showed the official exchange rate closed at ₦1,363.70/$, representing a 15-basis-point depreciation from the previous trading session. During the day, the naira traded within a range of ₦1,363 to ₦1,368 per dollar.
Foreign exchange activity increased significantly across the Nigerian Foreign Exchange Market (NFEM). Interbank turnover rose by 160% to $102.95 million, compared with $39.59 million recorded in the previous session. The number of completed FX transactions also increased sharply from 55 deals to 121 deals, reflecting stronger demand for dollars by market participants.
Meanwhile, Nigeria’s gross external reserves declined to $51.964 billion, slipping below the $52 billion mark after reaching a recent high of $52.036 billion. The decline follows recent foreign exchange interventions by the CBN, which continued supplying liquidity to the market to support naira stability amid elevated demand for international payments.
In the global commodities market, crude oil prices extended losses for a second consecutive day as easing geopolitical tensions reduced supply concerns. Brent crude traded around $83 per barrel, while West Texas Intermediate (WTI) fell below $80 per barrel, reversing gains recorded earlier in the month when fears of wider conflict pushed Brent above $100.
Lower crude oil prices could weigh on Nigeria’s foreign exchange earnings if the downward trend persists, given the country’s heavy reliance on oil exports for external revenue.
What’s Being Said
The Central Bank of Nigeria data indicates that increased market participation and stronger dollar demand drove Tuesday’s rise in FX turnover, while recent interventions by the apex bank continue to provide liquidity aimed at stabilising the naira.
What’s Next
- Investors will closely monitor the CBN’s next foreign exchange intervention for signs of continued market support.
- Movement in global crude oil prices will remain critical to Nigeria’s foreign exchange outlook and reserve position.
- Market participants will watch whether external reserves stabilise above current levels in the coming weeks.
The Bottom Line: Although the naira’s depreciation remained modest, the combination of declining external reserves and softer oil prices presents fresh challenges for exchange rate stability. Sustaining confidence in the foreign exchange market will depend on continued liquidity support and stronger foreign currency inflows.
