By Boluwatife Oshadiya | July 23, 2026
Key Points
- Naira appreciated to ₦1,369/$ at the official foreign exchange market
- Interbank FX turnover climbed 29% to $416.42 million
- Higher FX inflows and improved liquidity supported the local currency
Main Story
The naira extended its recovery against the United States dollar on Wednesday, appreciating to ₦1,369/$ at the Nigerian Foreign Exchange Market (NFEM) as stronger foreign exchange liquidity boosted market confidence.
Data released by the Central Bank of Nigeria (CBN) showed that turnover at the interbank foreign exchange market increased by 29% to $416.42 million, compared with $322.66 million recorded a day earlier. The number of completed deals also rose sharply to 198 from 110, indicating stronger trading activity.
The local currency’s appreciation marks its third consecutive day of gains, supported by increased dollar inflows from foreign portfolio investors, exporters and non-bank corporates. Improved liquidity helped ease pressure on the official market after recent weakness in the exchange rate.
Intraday trading was conducted within a relatively stable band of ₦1,365 to ₦1,378 per dollar, suggesting improved availability of foreign currency across the official market.
Analysts said Nigeria’s external reserves, which remain above $52 billion, alongside continued CBN liquidity interventions, have strengthened confidence in the foreign exchange market. However, they warned that external developments, particularly movements in global oil prices and geopolitical tensions, could still influence currency stability.
Meanwhile, global oil prices rose sharply after renewed tensions between the United States and Iran pushed Brent crude above $95 per barrel for the first time in nearly six weeks before prices eased later in the trading session. Rising crude prices could provide additional foreign exchange earnings for Nigeria if sustained.
What’s Being Said
“With more than $52 billion in gross external reserves, the foreign exchange market is expected to remain broadly stable despite a mild weakening bias,” market analysts said, citing continued CBN liquidity support and stronger FX inflows.
Economists also noted that sustained foreign portfolio investment inflows will remain critical to maintaining liquidity at the official market.
What’s Next
- Investors will monitor the CBN’s ongoing foreign exchange liquidity measures.
- Global oil price movements and geopolitical developments remain key factors for Nigeria’s FX outlook.
- The market will watch whether stronger foreign inflows can sustain the naira’s recent appreciation.
The Bottom Line: The naira’s latest gains underscore the importance of sustained FX liquidity in stabilising Nigeria’s currency market. Maintaining investor confidence and consistent foreign exchange inflows will be critical to preserving recent improvements, particularly as global geopolitical risks continue to influence oil prices and capital flows.
