By Boluwatife Oshadiya | August 17, 2026
Key Points
- Naira strengthens 0.26% against the euro at the Nigerian Foreign Exchange Market to N1,571.12
- Local currency extends its year-to-date gain against the euro to 6.88% from N1,687.29 at the start of 2026
- Increased foreign exchange liquidity and market confidence continue to support the naira at the official market
Main Story
The naira extended its year-to-date gain against the euro to 6.88% at the Nigerian Foreign Exchange Market (NFEM), supported by improved foreign exchange liquidity and market confidence.
Data attributed to the Central Bank of Nigeria (CBN) showed that the naira strengthened to N1,571.12 per euro, from N1,575.15 recorded the previous week. The move represents an improvement of about 0.26%, or 26 basis points, in the official market.
The latest exchange rate compares with N1,687.29 per euro at the beginning of 2026, representing a gain of about 6.88% for the naira against the European currency so far this year.
The performance comes as foreign exchange inflows and liquidity at the official window continue to provide support for the local currency. The naira has recorded intermittent gains against major currencies in 2026, with market conditions and central bank interventions contributing to movements in the exchange rate.
In the broader global market, the euro recently reached a weekly high of $1.1585 after data showed an unexpected decline in US employment in July. The move strengthened the euro against the dollar, although stretched momentum indicators suggested that further gains could be limited.
Global commodity markets have also remained influential for currency and inflation expectations. Oil prices rose during the previous week amid heightened concerns over possible disruptions to Middle Eastern crude supplies following a US threat of an indefinite naval blockade of Iran.
Precious metals recorded mixed performances, with gold and silver gaining amid lower expectations for US interest-rate increases and continued investor demand. Platinum declined, while zinc and lead edged higher among industrial metals as aluminium and tin weakened on softer demand and profit-taking.
What’s Being Said
CBN data underpinning the latest NFEM movement indicates that the naira’s improvement against the euro has been supported by conditions in the official foreign exchange market.
No direct statement from the CBN, an independent analyst or a private-sector market participant was included in the source material supplied for this report. BizWatch Nigeria has therefore not attributed any additional commentary to those stakeholders.
What’s Next
- Market participants will continue to monitor NFEM liquidity and foreign exchange inflows for signs of whether the naira can sustain its gains
- Movements in global oil prices and Middle Eastern supply risks could influence Nigeria’s foreign exchange position and the naira’s performance
- The euro’s movement against the US dollar and expectations around US interest rates will remain relevant to the naira-euro cross
Bottom Line
The Bottom Line: The naira’s 6.88% gain against the euro so far in 2026 points to a stronger performance in the official foreign exchange market, supported by improved liquidity and market confidence. Sustaining the trend will depend on the durability of foreign exchange inflows and developments in global commodity and currency markets.
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