By Boluwatife Oshadiya | June 15, 2026
Key Points
- Naira depreciated to N1,363.83/$ at the official market last week amid tight dollar liquidity
- Foreign portfolio investors contributed $510 million, accounting for more than half of total FX inflows
- Nigeria’s external reserves rose by $310.04 million to $50.43 billion
Main Story
The naira began trading this week on a weaker footing after posting mild losses across both the official and parallel foreign exchange markets last week, despite a rise in foreign exchange inflows and stronger external reserves.
Data from the Nigerian Foreign Exchange Market (NFEM) showed the local currency depreciated by 0.12% week-on-week to close at N1,363.83 per US dollar, compared with N1,362.21 recorded in the preceding week. The naira had briefly strengthened to around N1,360.55/$ during midweek trading before surrendering part of those gains as dollar demand resurfaced.
In the parallel market, the currency weakened by 0.36% to N1,405/$ from N1,400/$ a week earlier, according to Coronation Research. As a result, the gap between the official and parallel market rates widened to 3.02%, up from 2.77%.
Despite the depreciation, Nigeria’s external reserves continued their upward trajectory, increasing by $310.04 million to $50.43 billion. Market data also showed total foreign exchange inflows reached $930 million during the period.
Foreign portfolio investors (FPIs) remained the dominant source of inflows, contributing $510 million or 54.21% of total market supply. Exporters and importers accounted for $250 million, while non-bank corporates contributed $110 million.
“The naira is expected to trade within a relatively stable range in the near term, supported by sustained foreign currency inflows and improving market liquidity,” Coronation Research said in its weekly market outlook.
What’s Being Said
“The continued increase in reserves and strong participation by foreign investors should help support liquidity conditions in the FX market,” analysts at Coronation Research stated.
“Foreign portfolio inflows remain a key driver of supply in the market and are helping moderate volatility despite persistent demand pressures,” market analysts noted.
What’s Next
- Market participants will monitor the pace of foreign portfolio inflows this week for signs of sustained investor confidence.
- The Central Bank of Nigeria’s liquidity management operations are expected to influence short-term demand for foreign currency.
- Analysts will also track reserve accretion trends as global oil prices and crude production levels remain critical to Nigeria’s external position.
The Bottom Line:
The naira remains under pressure from lingering dollar demand, but rising reserves and robust foreign investor participation are helping to prevent sharper depreciation. Sustained FX inflows will remain crucial to exchange-rate stability in the coming weeks.
