Naira gains as external reserves climb to $50.5bn

The naira appreciated against the dollar across foreign exchange (FX) market segments on Monday as Nigeria’s external reserves rose to $50.51 billion, strengthening the Central Bank of Nigeria’s (CBN) capacity to support currency stability.

Data published by the CBN showed that the naira gained N7.56 at the Nigerian Foreign Exchange Market (NFEM), with the dollar quoted at N1,356.27 on Monday, compared with N1,363.83 on Thursday, the last trading day before the June 12 public holiday.

NFEM deal figures for Monday were not immediately available. However, market activity had declined by 18.79 percent to 255 deals on June 11 from 314 deals recorded on June 10.

Total turnover at the NFEM window also fell sharply to $184.34 million on June 11, representing a 48.69 percent decline from $359.27 million recorded on the previous trading day.

At the interbank segment of the FX market, the number of deals increased to 193 on June 11 from 84 deals recorded on June 10. Despite the increase in transaction volume, total interbank turnover declined by 6.57 percent to $70.42 million from $75.37 million.

In the parallel market, also known as the black market, the naira strengthened by N5 to close at N1,395 per dollar on Monday, compared with N1,400 per dollar at the close of trading last week.

As a result, the gap between the official and parallel market exchange rates narrowed to N39 per dollar on Monday from N46 per dollar recorded on Thursday.

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Nigeria’s external reserves, which provide the CBN with the firepower to support the naira and meet external obligations, maintained their upward trajectory, rising by 32.85 percent year-on-year to $50.51 billion as of June 11, 2026, compared with $38.02 billion recorded during the corresponding period in 2025, according to data on the CBN website.

A report by the Financial Markets Dealers Association (FMDA) noted that the naira had depreciated marginally by 0.08 percent in the NFEM market to N1,362.32 per dollar during the previous week amid lower FX market turnover.

The report also showed that oil prices declined by 4.28 percent to an average of $91.30 per barrel as optimism surrounding a potential U.S.-Iran peace agreement eased concerns about possible supply disruptions in the global oil market.

Despite the decline in oil prices, FMDA said average external reserves continued to improve, supported by sustained investor confidence and the gradual receipt of proceeds from earlier crude oil exports.

Analysts said the continued growth in reserves provides additional support for the CBN’s foreign exchange reforms and enhances its ability to cushion the economy against external shocks while helping to sustain exchange rate stability.

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.