By Boluwatife Oshadiya | August 12, 2026
Key Points
- The naira depreciated by N4.76 to N1,364.8992 per dollar at the Nigerian Foreign Exchange Market on Tuesday
- Interbank FX turnover fell 86.4% to $29.060 million, while settled deals dropped to 47 from 182
- Nigeria’s external reserves rose by $83.81 million to $52.14 billion, strengthening the country’s external liquidity buffer
Main Story
The naira weakened by N4.76 against the US dollar at the Nigerian Foreign Exchange Market on Tuesday as interbank foreign exchange activity fell sharply.
The local currency closed at N1,364.8992 per dollar, compared with N1,360.1415 recorded in the previous session, according to FX data obtained from the relevant authority.
Transactions at the official market were conducted between N1,361 and N1,365.5000, indicating renewed pressure on foreign exchange liquidity. The decline came as activity among Nigerian banks acting as market makers eased.
Interbank FX turnover fell to $29.060 million from $213.845 million in the previous session, representing a decline of more than 86%. The number of interbank deals settled also dropped to 47 from 182.
Market activity was also affected by weaker dollar volumes as banks reduced bids from customers seeking foreign exchange payments. The tighter liquidity conditions added pressure to the naira during the session.
In the parallel market, the naira remained stable at N1,420 per dollar, leaving a N55.10 gap between the informal rate and the official NFEM closing rate.
Meanwhile, Nigeria’s gross external reserves increased by $83.81 million to $52.14 billion, according to Central Bank of Nigeria foreign exchange data.
The increase in reserves provides an additional external liquidity buffer and could strengthen the Central Bank of Nigeria’s capacity to support orderly conditions in the foreign exchange market.
What’s Being Said
“We expect the naira to remain broadly stable, with market participants monitoring the pace of reserve accumulation and foreign exchange inflows for further direction,” AIICO Capital Limited said in a market update to investors.
Broadstreet analysts also told MarketForces Africa that market confidence remained strong, pointing to sustained inflows into Nigeria’s external reserves despite uncertainty in global commodity markets.
What’s Next
- Market participants will monitor the pace of foreign exchange inflows and reserve accumulation for signals on the naira’s near-term direction
- Banks and other market participants will continue to watch interbank FX liquidity and transaction volumes for signs of renewed market pressure
- The Central Bank of Nigeria’s management of external liquidity will remain important to maintaining orderly conditions in the official FX market
Bottom Line
The Bottom Line: The naira’s latest decline reflects renewed pressure at the official FX window as interbank turnover and transaction volumes contracted sharply. However, rising external reserves provide a stronger liquidity buffer that could help limit volatility if foreign exchange inflows remain sustained.
