The naira concluded the week weaker across foreign exchange (FX) market segments, despite Nigeria’s external reserves reaching the Central Bank of Nigeria’s (CBN) projected target of $51.04 billion. This occurred amidst slowing market liquidity.
Data from the CBN indicated that the naira depreciated by N6.68, a 0.48 percent week-on-week decline, with the dollar quoted at N1,370.46 on Friday at the Nigerian Foreign Exchange Market (NFEM), compared to N1,363.83 on Thursday.
Over the five trading sessions, the naira lost N14.19 or 1.04 percent from its opening rate of N1,356.27.
While Friday's NFEM turnover and transaction figures were not immediately available, market activity showed signs of moderation. The number of deals declined slightly by 2.3 percent to 253 on June 18 from 259 deals on June 17. Total deals executed at the NFEM stood at 1,510 as of Thursday.
Total turnover at the NFEM window rose by 29.25 percent to $378.34 million on June 18 from $292.72 million on June 17. Weekly turnover at the official market reached $2.56 billion, according to CBN data.
At the interbank FX segment, the number of deals dropped by 30.59 percent to 59 on Friday from 85 transactions on Thursday. Total interbank deals for the week were 620.
Turnover at the interbank market declined by 42.95 percent to $39.89 million on Friday from $69.92 million the previous day. Weekly turnover at the segment closed at $544.55 million.
In the parallel market, the naira strengthened marginally to N1,400 per dollar on Friday from N1,403 on Thursday, a 0.2 percent gain. The gap between the official and parallel market exchange rates narrowed to N30 per dollar from N40 recorded a day earlier.
Nigeria’s external reserves continued their upward trend, reaching the CBN target of $51.04 billion as of June 18, 2026. This represents an increase of 35.35 percent, or $13.33 billion, compared to $37.71 billion recorded during the same period in 2025, according to CBN data.
This reserve level meets the CBN’s projection made at the end of December 2025, which forecasted external reserves to rise to $51.04 billion in 2026. The projection was based on expectations of reduced pressure in the foreign exchange market, stronger oil earnings, and sustained inflows from remittances and foreign portfolio investments.
Despite the improvement, the International Monetary Fund (IMF) has recommended a slower pace of reserve accumulation, suggesting it would allow the naira to move closer to its estimated fair value. The IMF believes continued reserve accumulation may be slowing the naira's adjustment towards its equilibrium exchange rate, even as it strengthens Nigeria’s external buffers.
Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), stated that recent economic reforms have helped stabilize the foreign exchange market, improve external sector balances, strengthen investor confidence, and restore policy credibility.
“The moderation in exchange rate volatility, the improvement in foreign reserves, the recovery in capital inflows and the stronger performance of many quoted companies underscore the positive outcomes of the stabilisation measures undertaken over the past three years,” Yusuf said.
