By Boluwatife Oshadiya | June 18, 2026
Key Points
- The naira weakened to ₦1,360.07 per dollar at the official market
- Interbank FX turnover plunged 57% to $54.29 million
- Nigeria’s external reserves climbed to $50.89 billion despite weaker market liquidity
Main Story
Nigeria’s currency weakened against the United States dollar on Wednesday as foreign exchange liquidity tightened significantly across the official market. Data released by the Central Bank of Nigeria (CBN) showed the naira depreciated to ₦1,360.07/$ from ₦1,357.18/$ recorded in the previous trading session.
The depreciation occurred amid a sharp decline in market activity, with interbank foreign exchange turnover falling by approximately 57% to $54.29 million compared with $125.69 million recorded a day earlier.
Market participants attributed the decline in liquidity to reduced inflows from exporters, foreign portfolio investors and non-bank corporates.
Despite the weaker exchange rate, Nigeria’s external reserves continued their upward trajectory, rising to $50.89 billion — their highest level since 2009. The increase has been supported by improved oil export earnings, stronger remittance inflows and ongoing foreign exchange reforms introduced by the CBN.
Foreign exchange transactions during the session were executed within a range of ₦1,357 to ₦1,361.50 per dollar, indicating relatively stable but constrained liquidity conditions.
The development comes as the apex bank maintains a more market-driven exchange rate framework while continuing targeted interventions aimed at preserving currency stability.
What’s Being Said
“The decline in turnover reflects temporary liquidity constraints rather than a deterioration in underlying foreign exchange fundamentals,” market analysts said.
“External reserves remain strong enough to support market confidence and help moderate excessive exchange rate volatility,” currency market experts noted.
What’s Next
- Investors will monitor future CBN interventions and liquidity injections into the foreign exchange market.
- Market participants are expected to watch reserve levels and foreign portfolio inflows closely.
- Global crude oil price movements will remain a key determinant of Nigeria’s FX earnings outlook.
The Bottom Line:
While the naira’s depreciation reflects short-term liquidity pressures, rising external reserves continue to provide a critical buffer for the currency. Sustained FX inflows and reserve growth will remain essential for maintaining market stability.
