By Boluwatife Oshadiya | August 18, 2026
Key Points
- Naira appreciates to ₦1,349.54/$ at the Nigerian Foreign Exchange Market (NFEM)
- Interbank FX turnover jumps 266% to $437.53 million as market activity increases
- NFEM inflows rise to $1.77 billion while external reserves increase to $52.26 billion
Main Story
The naira strengthened to ₦1,349.54 per US dollar at the Nigerian Foreign Exchange Market (NFEM) on Monday as interbank foreign exchange turnover surged 266%.
The local currency appreciated from an opening rate of ₦1,357.61/$ to ₦1,349.54/$, while the spot rate traded between ₦1,347 and ₦1,361, according to official market data cited by MarketForces Africa.
Interbank FX turnover rose to $437.53 million from $119.59 million at Friday’s close, representing an increase of about 266%. The number of deals also increased to 178 from 137, pointing to stronger activity among financial institutions and market makers.
The improved trading activity came as FX liquidity strengthened at the official market. The research subsidiary of Coronation Group reported that total FX inflows into the NFEM window increased to $1.77 billion from $830 million in the preceding week.
Domestic sources accounted for 63.44% of total inflows. Exporters contributed 31.20%, while Non-Bank Corporates accounted for 17.67%, highlighting the role of autonomous market participants in supplying foreign exchange.
The Central Bank of Nigeria (CBN) contributed $252.1 million, equivalent to 14.27% of total NFEM inflows. Foreign Portfolio Investors (FPIs) remained the largest individual source, contributing 33.71% of aggregate inflows, according to Coronation Group’s research subsidiary.
The naira had appreciated by 0.59% in the previous week to close at ₦1,357.61/$, while the parallel market remained at ₦1,420/$.
Nigeria’s gross external reserves also increased by 0.39% week-on-week to $52.26 billion from $52.06 billion, according to the market report.
the issues
The increase in FX turnover and inflows points to improved liquidity in the official market, reducing immediate pressure on the naira. However, the composition of inflows remains important, with exporters, non-bank corporates, FPIs and the CBN providing different sources of FX supply.
what’s being said
Coronation Group’s research subsidiary reported that domestic sources accounted for 63.44% of NFEM inflows, with exporters and non-bank corporates making significant contributions.
The research firm expects the naira to remain broadly stable in the near term, supported by improved FX liquidity, sustained autonomous inflows and the country’s stronger external reserves position.
what’s next
Market participants will monitor whether the higher NFEM turnover and stronger FX inflows are sustained in subsequent trading sessions.
The direction of the naira will also depend on continued autonomous FX supply, CBN activity and movements in Nigeria’s external reserves.
The Bottom Line:
The naira’s latest appreciation is being supported by a measurable improvement in official-market FX liquidity rather than a single intervention. Sustaining the current level of inflows will be critical to keeping the currency broadly stable.
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