The naira remained broadly stable against the dollar on the first trading day of this week as activity in the foreign exchange (FX) market moderated, while Nigeria’s external reserves continued to build, strengthening the country’s capacity to support the local currency.
Data published by the Central Bank of Nigeria (CBN) showed that the naira depreciated marginally by 49 kobo, with the dollar quoted at N1,346.98 on Monday at the Nigerian Foreign Exchange Market (NFEM), compared with N1,346.49 on Friday.
In the parallel market, also known as the black market, the naira remained steady at N1,405 per dollar. This narrowed the gap between the official and parallel market rates to 4.38 percent from 4.75 percent on Friday.
Market activity also moderated, with total turnover at the interbank segment of the FX market declining by 4.47 percent to $152.59 million on Monday from $159.73 million recorded on Friday.
The number of deals at the interbank segment fell sharply by 51.02 percent to 144 from 294 deals recorded on Friday, indicating softer trading activity.
Although NFEM figures for Monday’s deals and turnover were not available as of the time of reporting, activity at the window had already moderated at the end of last week.
Total turnover at the NFEM window fell by 17.88 percent to $755.87 million on Friday from $920.46 million on Thursday, while the number of deals declined by 66.36 percent to 109 from 324 deals.
Meanwhile, Nigeria’s external reserves, which provide the CBN with the capacity to support the naira and meet the country’s external obligations, continued their upward trajectory.
CBN data showed that the reserves rose to $52.83 billion as of August 21, 2026, representing a 28.6 percent increase from $41.08 billion recorded in the corresponding period of 2025.
The rising reserves are strengthening Nigeria’s external position and providing a larger buffer against foreign exchange pressures, at a time when improved FX supply and market confidence have supported the naira.
A half-year financial market report by United Capital Plc said the naira appreciated by 4.52 percent against the dollar in the first half of 2026, driven largely by rising FX supply from oil revenues, remittances and capital inflows, as well as improved market confidence following FX reforms.
‘Going into H2 2026, we expect stability and marginal appreciation in the value of the Naira against US dollars,’ the report said.
United Capital said Nigeria’s external reserves performance in the first half of 2026 reflected a three-phase pattern of early stability, sustained drawdown and late-period recovery.
It attributed the recovery to increased crude oil revenue, higher capital importation, an improved net export balance, increased remittances from abroad and growing confidence in the Nigerian economy.
The investment firm said the current reserve level was sufficient to cover more than 10 months of imports, providing support for naira stability and the possibility of further appreciation.
It revised its year-end reserve forecast to $53.25 billion, which it said would be enough to cover more than 13 months of imports.
The combination of stronger external buffers, improved FX supply and confidence in the market is therefore expected to continue supporting relative stability in the naira, even as trading activity moderates.