Naira cools further despite higher FX interbank liquidity, rising reserves

The naira on Monday remained under mild pressure against the dollar in the official foreign exchange (FX) market despite improving liquidity in the interbank FX segment and continued growth in Nigeria’s external reserves.

Data published by the Central Bank of Nigeria (CBN) showed that the naira depreciated slightly by N2.70 as the dollar was quoted at N1,383.63 on Monday, compared to N1,380.93 on Friday at the Nigerian Foreign Exchange Market (NFEM).

Activity in the interbank FX market strengthened significantly. Total turnover surged by 80.28 percent to $223.94 million on Monday from $124.22 million recorded on Friday. The number of deals also rose sharply from 108 to 173, representing a 60.19 percent increase, indicating stronger market participation at the start of the week.

Although the CBN had yet to release Monday’s NFEM turnover and transaction data as of the time of filing this report, available data for Friday showed mixed market activity. The number of deals edged down by 1.64 percent to 299 from 304 recorded on Thursday, while total turnover declined by 52.68 percent to $437.09 million from $923.64 million.

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In the parallel market, also known as the black market, the naira closed unchanged at N1,395 per dollar, the same level recorded at the close of trading last week. As a result, the gap between the official and parallel market exchange rates narrowed to N12 per dollar from N15 recorded on Friday.

Nigeria’s external reserves, which provide the CBN with the capacity to support the naira and meet the country’s external obligations, have continued to trend upward. Data published on the apex bank’s website showed that reserves rose to $51.29 billion as of June 26, 2026, representing an increase of $13.92 billion or 37.25 percent from $37.37 billion recorded during the corresponding period in 2025.

The CBN earlier disclosed that Nigeria’s gross external reserves stood at $49.49 billion as of May 15, 2026, providing approximately 9.04 months of import cover. According to the Monetary Policy Committee (MPC), this level of reserves constitutes a robust and adequate buffer capable of supporting macroeconomic stability and enhancing confidence in the economy.

On exchange rate stability, the apex bank said the naira has recorded improved relative stability following ongoing foreign exchange reforms, stronger market liquidity, and increased transparency in the FX market.

According to the CBN, the improved stability is reflected in the relatively narrow spread between the official exchange rate and rates in the Bureau de Change (BDC) segment, suggesting that reforms introduced by the bank are helping to improve price discovery and reduce distortions in the foreign exchange market.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.