Naira rises to near one-month high of N1,357.26 as liquidity improves

The naira on Wednesday appreciated to a near one-month high of N1,357.26 per dollar in the official foreign exchange market as liquidity conditions improved amid rising external reserves. The last time the local currency traded around the same level was on May 6, 2026, when it closed at N1,357.34 per dollar.

Data published by the Central Bank of Nigeria (CBN) showed that the naira strengthened by N3.79, with the dollar quoted at N1,357.26 on Wednesday, compared with N1,361.05 on Tuesday at the Nigerian Foreign Exchange Market (NFEM).

Figures for total turnover and the number of deals at the NFEM window on Wednesday were not available as of the time of reporting. However, market activity on Monday and Tuesday showed that total NFEM turnover declined by 14.97 percent to $676.43 million on Tuesday from $795.55 million recorded on Monday. The number of deals also fell to 376 from 392 over the same period.

Activity in the interbank segment weakened further on Wednesday. The number of deals declined by 19.05 percent to 136 from 168 on Tuesday, while total interbank turnover fell by 21.25 percent to $133.73 million, compared with $169.82 million recorded a day earlier.

In the parallel market, commonly referred to as the black market, the naira depreciated by N8, or 0.57 percent, to close at N1,393 per dollar on Wednesday, compared with N1,385 per dollar, where it had traded since Friday last week. As a result, the gap between the official and parallel market rates narrowed to N18 per dollar from N24 per dollar on Tuesday.

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Nigeria’s external reserves, which provide the CBN with the capacity to support the naira and meet foreign exchange obligations, have continued to rise steadily. Data published on the CBN website showed that reserves increased by $1.55 billion to $49.87 billion as of June 2, 2026, from $48.32 billion recorded on May 7, representing a growth of 3.2 percent.

The strengthening of external buffers has been supported by improved foreign exchange inflows into the economy. Nigeria’s foreign exchange market recorded a significant improvement in January 2026, with net foreign exchange inflows tripling to $9.22 billion as stronger dollar supply, lower outflows and increased market activity supported the naira and boosted reserves.

CBN data showed that aggregate foreign exchange inflows rose by 45.24 percent to $12.23 billion in January from $8.42 billion in December 2025, while total outflows declined, resulting in a net inflow of $9.22 billion compared with $3.11 billion in the previous month.

The increase was driven by both official and autonomous sources. Foreign exchange inflows through the CBN rose to $4.66 billion from $3.69 billion in December, while autonomous inflows increased to $7.57 billion from $4.73 billion over the same period, reflecting stronger participation across 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.