By Boluwatife Oshadiya| August 20, 2026
Key Points
- Naira weakens to N1,350.4134 per dollar as demand for international payments outpaces available FX liquidity
- Interbank FX turnover rises to $370.98 million while the number of deals falls to 100
- The currency also loses 1.09% against the pound and 1.16% against the euro at the official market
Main Story
The naira weakened against the U.S. dollar, euro, pound sterling and Japanese yen as demand for foreign exchange outpaced available liquidity in Nigeria’s official market.
The naira closed at N1,350.4134 per dollar on Wednesday, compared with N1,343.3202 on the previous trading day, according to a Central Bank of Nigeria (CBN) daily foreign exchange update.
Broadstreet FX analysts said transactions were executed between N1,348 and N1,353 as market participants anticipated that the CBN could moderate the currency’s recent appreciation.
Interbank FX turnover increased to $370.98 million from $364.71 million previously, representing an increase of about 2%, according to CBN data. However, the number of interbank transactions fell to 100 from 108, suggesting fewer individual deals despite the higher value of transactions.
The naira also weakened against major currencies at the official market. AIICO Capital Limited reported declines of 1.09% against the British pound and 1.16% against the euro, while both currency pairs remained broadly unchanged in the parallel market.
The naira traded at N1,573.7290 per euro, N1,839.1280 per pound sterling and N8.5190 per Japanese yen, according to the CBN data supplied in the report.
The Issues
The latest movement reflects the continuing balance between foreign-exchange demand and available market liquidity. The CBN has also intervened in the market during 2026 by purchasing dollars at the official window after the naira’s rapid appreciation, according to the supplied report.
Persistent dollar demand and any renewed divergence between official and parallel-market rates remain key risks to further naira appreciation.
What’s Being Said
Broadstreet FX analysts said the market was trading within a relatively narrow range of N1,348–N1,353 per dollar, while AIICO Capital expects the naira to remain broadly stable in the near term as FX liquidity improves.
Editorial note: The supplied material contains no direct quotations. Verified direct quotes from Broadstreet FX, AIICO Capital or the CBN should be inserted before publication to satisfy the Daily News Brief quotation requirement.
What’s Next
- The market will monitor whether improved FX liquidity can absorb persistent dollar demand
- Investors will watch CBN activity, FX inflows and reserve accumulation for signals on the naira’s near-term direction
- The gap between official and parallel-market exchange rates will remain a key indicator of underlying currency pressure
Bottom Line:
The naira’s latest decline appears more consistent with renewed demand pressure than a broad reversal in the currency’s recent stability. Sustained improvement will depend on whether FX inflows can continue to match demand without widening the gap between official and parallel-market rates.
