By Boluwatife Oshadiya | August 10, 2026
Key Points
- Naira appreciates 0.19% week-on-week to close at N1,365.69 per dollar at the NFEM
- External reserves rise 0.15% week-on-week to US$52.00 billion
- Lower oil prices and Strait of Hormuz uncertainty keep pressure on Nigeria’s external earnings outlook
Main Story
The naira strengthened to N1,365.69 per US dollar at the Nigerian Foreign Exchange Market (NFEM), while Nigeria’s external reserves rose to US$52.00 billion during the week.
Data released by the Central Bank of Nigeria (CBN) showed that the naira gained 0.19% week-on-week, improving from about N1,368 per dollar at the beginning of the previous trading week.
The appreciation came despite sharp liquidity fluctuations in the official foreign exchange market, which caused the currency to surrender some of its earlier gains during the final three trading sessions.
In the parallel market, the naira weakened by 0.06% to N1,410 per dollar, reflecting continued demand from participants in the informal foreign exchange segment.
Meanwhile, Nigeria’s external reserves increased by 0.15% week-on-week to US$52.00 billion, pointing to a marginal improvement in the country’s external liquidity position.
The reserves position comes as global oil markets remain volatile. Brent crude was trading at US$82.22 per barrel at the time of writing, while West Texas Intermediate (WTI) stood at US$77.22 per barrel. Bonny Light declined by 6.04% to US$89.06 per barrel.
The source material attributed the movement in oil prices to easing supply concerns following U.S.-Iran diplomatic discussions aimed at restoring peace in the Middle East and reopening the Strait of Hormuz.
However, uncertainty remained around the negotiations and the reopening of the strategic oil and liquefied natural gas (LNG) transit route. Traders reported that 33 vessels passed through the Strait between Monday and Thursday, compared with 50 vessels during the corresponding period of the previous week.
[Direct quote required before publication: Insert a verified short statement from the CBN, a named market analyst, or another authoritative source on the naira/reserves outlook.]
What’s Being Said
Broadstreet analysts and market participants expect the naira to remain relatively stable in the near term, supported by the improvement in external reserves and continued foreign exchange interventions.
Analysts also expect oil prices to remain volatile as geopolitical developments, Organisation of the Petroleum Exporting Countries and its allies (OPEC+) policy decisions and global demand conditions influence Nigeria’s export earnings and fiscal position.
What’s Next
- Continued CBN foreign exchange interventions and reserve accumulation will remain important for near-term naira stability
- Movements in Brent, WTI and Bonny Light will continue to influence Nigeria’s export earnings and external liquidity
- Developments around the Strait of Hormuz and U.S.-Iran negotiations will remain key variables for global oil supply and prices
Bottom Line
The Bottom Line: The naira’s weekly appreciation and stronger reserves provide a more supportive near-term external liquidity picture, but the improvement remains exposed to oil-market volatility. Sustained currency stability will depend on the durability of reserve accumulation, foreign exchange liquidity and Nigeria’s oil earnings.
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