By Boluwatife Oshadiya | August 6, 2026
Key Points
- The naira depreciated by ₦1.30 to close at ₦1,363.85 per US dollar at the Nigerian Foreign Exchange Market (NFEM)
- Interbank foreign exchange turnover fell 52% to $75.36 million as deal volume and market activity weakened
- Nigeria’s external reserves rose to $51.95 billion, providing continued support for foreign exchange market stability
Main Story
The naira weakened slightly against the US dollar on Wednesday after reduced foreign exchange liquidity pushed the official exchange rate to ₦1,363.85/$1, compared with ₦1,362.55/$1 recorded in the previous trading session.
Data released by the Central Bank of Nigeria (CBN) showed that activity at the Nigerian Foreign Exchange Market (NFEM) slowed significantly, with interbank foreign exchange turnover falling by approximately 52% to $75.36 million from $156.23 million recorded a day earlier. The number of completed transactions also declined sharply to 82 deals, down from 189 deals in the previous session.
The official exchange rate traded within a range of ₦1,361.75 and ₦1,364.90 per US dollar during the session, reflecting tighter liquidity conditions amid reduced dollar supply and persistent demand for foreign exchange from businesses and importers.
Market activity was largely subdued as the absence of substantial foreign exchange intervention from the Central Bank limited liquidity in the interbank market, while demand for international payment obligations continued to outpace available supply.
Meanwhile, the parallel market remained relatively stable. CBN-authorised Bureau De Change (BDC) operators in Lagos and Abuja quoted the US dollar at around ₦1,415/$1, according to market checks by MarketForces Africa.
Nigeria’s gross external reserves, however, continued their gradual improvement, increasing by $5.31 million to $51.95 billion as of August 4, 2026, reinforcing expectations that the apex bank retains sufficient buffers to support exchange rate stability if necessary.
What’s Being Said
Independent market analysts note that Nigeria’s growing external reserves could help cushion the foreign exchange market against excessive volatility, although sustained liquidity will depend on continued inflows from oil exports, foreign portfolio investments and diaspora remittances.
What’s Next
- Market participants will monitor whether the Central Bank of Nigeria resumes stronger foreign exchange interventions to improve market liquidity.
- Investors will watch movements in Nigeria’s external reserves for further signals on the CBN’s capacity to support the naira.
- The next trading sessions will indicate whether Wednesday’s sharp decline in turnover was temporary or the beginning of a broader slowdown in interbank market activity.
Bottom Line:
The naira’s latest decline reflects weakening liquidity rather than heightened market panic. While Nigeria’s rising external reserves provide a measure of confidence, sustained stability in the foreign exchange market will ultimately depend on stronger dollar inflows and improved market liquidity rather than intermittent intervention alone.
