Naira depreciates in parallel market against its dollar counterpart, Naira may stabilise parallel markets Naira at official market, Naira crashes again, JP-Morgan lauds Nigeria’s market-friendly reforms.
The naira maintained stability at N1,365.69 to the dollar in the official foreign exchange market on Thursday and Friday last week, marking its firmest stretch in months amid a broader recovery in liquidity that eased pressure on the currency. Improved dollar inflows and tighter demand underpinned the calm, with traders reporting heightened activity at both the Central Bank of Nigeria’s window and authorised dealer banks.

The latest closing rate points to a tentative recovery after weeks of volatility, bringing relief to businesses and importers who track official rates closely. In the Bureau de Change segment, the naira also held firm at N1,420/$ on both days.

The pound sterling remained steady at N1,900/£, while the naira strengthened slightly against the euro, closing at N1,595/€ on Friday compared with N1,600/€ the previous day. Other rates included the Canadian dollar at around N995 and the Chinese yuan at N206.

The stability coincides with a strong rebound in overall market activity. Nigeria’s foreign exchange market recorded total inflows of $4.4 billion in July 2026, a 59 percent rise month-on-month, according to data from FMDQ. Domestic sources drove the surge, more than doubling to $2.9 billion from $1.3 billion in June.

The Central Bank accounted for the largest share, with FX sales climbing to approximately US$1.4 billion, up sharply from an estimated $320 million the previous month. Exporters’ proceeds rose to $905.1 million from $867.9 million, supported by higher crude oil production and relatively firm oil prices. Local corporates also increased supply by 38 percent to $579.5 million.

Foreign inflows remained broadly stable at $1.5 billion. Foreign portfolio investment moderated slightly to US$1.3 billion, reflecting continued caution among offshore investors, while foreign direct investment provided a notable boost, rising to $129.9 million from just $19.2 million.

Analysts at Quest MB expect liquidity conditions to stay supportive in the coming months, backed by healthy reserves, ongoing CBN interventions and stronger domestic participation. They note that domestic sources are increasingly anchoring the market at a time when foreign portfolio flows remain subdued.

However, the durability of the recent exchange-rate stability will ultimately hinge on Nigeria’s ability to attract more stable, long-term capital and reduce reliance on short-term portfolio inflows. For now, the combination of steady official rates and improved liquidity offers a measure of breathing space for the economy.

For Advert, Event Coverage/Press Conference Invite, Story/Article Publication & Other Media Services
Contact Us On WhatsApp
Send Email To: citizennewsng@gmail.com
Visit Citizen NewsNG To Read More Latest And Interesting News Across Nigeria And The World