Naira weakened slightly in the official foreign exchange (FX) market on Wednesday despite improved market liquidity and rising external reserves, as demand pressures continued to weigh on the local currency.
Data published by the Central Bank of Nigeria (CBN) showed that the naira depreciated by N3.32 against the dollar, closing at N1,379.07 on Wednesday compared with N1,375.75 on Tuesday at the Nigerian Foreign Exchange Market (NFEM), representing a 0.24 percent loss.
Activity in the interbank FX market strengthened significantly, with total turnover surging by 398.54 percent to $208.09 million on Wednesday from $41.74 million recorded on Tuesday.
The number of deals also increased sharply to 150 on Wednesday from 47 recorded the previous day.
Although the CBN had yet to publish the NFEM turnover and deal figures for Wednesday as of the time of reporting, the market recorded strong activity earlier in the week. Total turnover at the NFEM rose by 92.12 percent to $423.02 million on July 7, 2026, from $220.18 million on July 6. However, the number of deals declined by 8.06 percent to 194 from 211 over the same period.
Nigeria’s external reserves, which provide the CBN with the capacity to support the naira and meet external obligations, continued their upward trajectory, rising to $51.64 billion as of July 7, 2026. This represents a 38.52 percent increase from $37.28 billion recorded in the corresponding period of 2025.
In the parallel market, the naira traded unchanged at N1,410 per dollar. Consequently, the gap between the official and parallel market exchange rates widened to about N31, compared with around N13 recorded last week.
Market data showed that total foreign exchange inflows for last week stood at $0.99 billion, with foreign portfolio investors accounting for the largest share at 35.81 percent, equivalent to $0.35 billion.
Exporters contributed 28.72 percent, or $0.28 billion, while the CBN supplied 11.15 percent, or $0.11 billion. Non-bank corporations accounted for 10.92 percent of total inflows, underscoring continued support from both market-driven and official sources.
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Analysts at Coronation Merchant Bank Research said they expect the naira to remain broadly stable in the near term, supported by improved liquidity at the NFEM and the continued build-up in external reserves.
However, they noted that the wider premium between the official and parallel markets indicates that underlying demand pressures persist, which could limit the pace of any further appreciation of the local currency.