By Boluwatife Oshadiya | September 2, 2026
Key Points
- Naira strengthens to N1,329.4300 per dollar at the official market from N1,332.9396 previously
- Nigeria’s gross external reserves reach $53.806 billion at the end of August
- NFEM turnover rises 31% to $130.454 million as financial institutions increase trading activity
Main Story
The naira appreciated to N1,329.4300 per US dollar at the official foreign exchange market on Tuesday as Nigeria’s gross external reserves reached $53.806 billion at the end of August.
Data released by the Central Bank of Nigeria (CBN) showed the official exchange rate strengthened from N1,332.9396 per dollar on the previous trading day. Transactions were completed between N1,327 and N1,335.5000 per dollar during the session.
The increase in trading activity was reflected in turnover at the Nigerian Foreign Exchange Market (NFEM), which rose by about 31% to $130.454 million from $105.643 million on Monday.
The number of transactions executed by financial institutions also increased to 139 from 118 a day earlier, according to CBN data.
The stronger naira comes against a backdrop of improved foreign exchange liquidity and higher external reserves. Gross external reserves stood at $53.806 billion at the end of August, providing additional support for the foreign exchange market.
Broadstreet analysts maintained a positive outlook for the naira, noting that the currency has already moved beyond the N1,350 per dollar year-end target set for 2026.
The trading range, however, remained relatively wide, with Tuesday’s low of N1,327 coming above Monday’s intraday low of N1,320, indicating continued movement in the market as buyers and sellers adjusted to prevailing liquidity conditions.
What’s Being Said
Broadstreet analysts have maintained a positive outlook for the naira, citing stronger foreign exchange liquidity and limited demand for international payments as factors supporting the currency.
The CBN’s daily foreign exchange data also showed increased participation among financial institutions, with both transaction numbers and interbank turnover rising during Tuesday’s session.
No direct quotation from the CBN or an independent market participant was provided in the source material.
What’s Next
- Market participants will monitor whether the naira can sustain its appreciation as September trading progresses
- NFEM turnover and transaction volumes will remain key indicators of foreign exchange liquidity and market participation
- Investors will watch movements in external reserves and foreign exchange demand for signals on the currency’s near-term direction
Bottom Line
The Bottom Line: The naira’s latest appreciation reflects a combination of stronger external reserves, increased FX-market activity and improved liquidity conditions. Sustaining the gains will depend on whether those conditions persist while foreign exchange demand remains contained.
