By Boluwatife Oshadiya | August 4, 2026, 9:00 AM
Key Points
- The naira appreciated by ₦3.38 against the US dollar at the official foreign exchange market
- The local currency closed at ₦1,364.83/$1 on Monday, compared with ₦1,368.22/$1 on Friday
- The recovery marks the naira’s first gain after a week of sustained depreciation
Main Story
The naira began August on a stronger footing, appreciating by ₦3.38 against the United States dollar at the official foreign exchange market on Monday, according to data published by the Central Bank of Nigeria (CBN).
Figures on the CBN’s official website showed the domestic currency closed at ₦1,364.83 per dollar, improving from ₦1,368.22/$1 recorded at the close of trading on Friday. The movement represents a 0.2% appreciation in the exchange rate.
Monday’s gain ends a week-long spell of depreciation for the local currency, providing a modest recovery at the start of the new trading month.
The official foreign exchange market has remained under close watch by investors and businesses as the CBN continues efforts to improve liquidity, strengthen price discovery, and stabilise the naira through ongoing foreign exchange market reforms.
What’s Being Said
“The Central Bank of Nigeria remains committed to maintaining a transparent, market-driven foreign exchange system that supports price stability and investor confidence,” the CBN has consistently stated in outlining its foreign exchange reform agenda.
Independent market analysts noted that while Monday’s appreciation is encouraging, sustained exchange rate stability will depend on stronger foreign exchange inflows, improved market liquidity, and continued policy consistency from the apex bank.
What’s Next
- Investors will monitor whether the naira can sustain its recovery in subsequent trading sessions.
- Market participants are expected to watch for further CBN interventions and foreign exchange liquidity trends throughout August.
- Analysts will also assess the impact of global dollar movements and domestic foreign exchange supply on the currency’s performance.
The Bottom Line: Monday’s appreciation offers a positive start to August for the naira, but a single day of gains is unlikely to signal a lasting trend. Sustained stability will depend on continued foreign exchange inflows, consistent monetary policy implementation, and improved market confidence.
