The naira concluded June 2026 at N1,376 per United States dollar in the official foreign exchange market, showing a slight weakening despite considerable intra-month fluctuations. This closing rate compares to N1,366/$ at the beginning of June, indicating a depreciation of N10, or approximately 0.7%.
This performance underscores the continued volatility within Nigeria’s foreign exchange market. However, the naira remained significantly stronger than its position a year earlier, a testament to ongoing reforms by the Central Bank of Nigeria (CBN).
Intra-Month Volatility and Liquidity
CBN data revealed that the naira traded within a relatively wide range throughout June, reflecting dynamic market conditions. The currency appreciated to its strongest level of N1,356/$ on June 15 before weakening to a monthly low of N1,389/$ on June 24, a swing of N33. It then recovered modestly in the final trading sessions to settle at N1,376/$.
The June 30 trading session recorded an interbank turnover of $269.90 million. No NFEM turnover was reported for that specific day at the time of the report. Market liquidity remained robust throughout the month, with NFEM turnover reaching $985.56 million on June 15, $923.64 million on June 25, and $910.78 million on June 29. These figures suggest healthy trading activity despite persistent exchange rate volatility.
Year-on-Year Gains and Stability Drivers
The naira’s June performance demonstrated relative stability compared to the previous month and a notable strengthening year-on-year. The currency closed May 2026 at N1,372/$, indicating a marginal month-on-month depreciation of N4. More significantly, on a year-on-year basis, the naira appreciated from N1,532/$ on June 30, 2025, representing a gain of about N156, or 10.2%.
This stronger annual performance has been supported by improved market transparency, tighter liquidity management, increased diaspora remittances, stronger foreign portfolio inflows, and measures aimed at curbing speculative demand for foreign exchange. Higher foreign exchange inflows from oil exports and continued reforms in the official market have also helped moderate exchange rate pressures, even with sustained demand from manufacturers and importers. The naira’s ability to remain within a relatively narrow trading band compared to previous periods points to improving market stability.
Analysts Weigh In on Market Resilience
Financial analysts view the naira’s June performance as an indicator of increased resilience in the foreign exchange market. They emphasize that sustaining this stability will require stronger dollar inflows from exports and foreign investment.
Mallam Muftau Yusuf, a financial economist at Kwik Securities Ltd, noted that the relative stability reflects improved market confidence and the effectiveness of ongoing monetary reforms. He consistently maintained that the major challenge is no longer exchange rate management but ensuring Nigeria generates sufficient foreign exchange through increased oil production, non-oil exports, and foreign direct investment. “The exchange rate has become more predictable than it was a year ago. What is needed now is sustainable foreign exchange earnings that can support long-term stability,” Yusuf stated.
Dr. Femi Ojelabi, an economist, highlighted that the narrowing gap between official and parallel market rates has reduced speculative activities that previously fueled sharp currency depreciation. He observed that market participants are increasingly relying on the official window due to more efficient price discovery. Ojelabi also argued that exchange rate stability should be complemented with policies that stimulate domestic production. “Exchange rate stability is positive for businesses, but it should translate into lower inflation and improved productivity for the economy to fully benefit,” he said.
Both experts anticipate that the CBN will maintain its liquidity management and intervention strategy in the third quarter, as seasonal import demand and global market developments continue to influence the foreign exchange market.
Ongoing CBN Reforms and Reserve Growth
The CBN has consistently implemented reforms aimed at improving transparency and liquidity in Nigeria’s foreign exchange market, including measures to unify exchange rates and attract foreign capital inflows. Nairametrics recently reported that Nigeria’s foreign reserves rose above $51 billion in June, reaching their highest level since 2009. External reserves gained more than $1 billion in the first half of June 2026, supported by stronger foreign exchange inflows. The CBN has maintained a relatively stable exchange rate framework in recent months through ongoing market reforms and improved liquidity conditions.
