Foreign exchange turnover on the Nigerian Foreign Exchange Market (NFEM) fell to $184.99 million on August 11, 2026. This represents the lowest level of activity in 11 weeks, according to data from the Central Bank of Nigeria (CBN).

The last time turnover was lower was on May 25, 2026, when it stood at $175.34 million. The sharp decline occurred as trading activity and the number of deals thinned significantly.

The naira closed weaker at N1,365 per dollar on Tuesday, August 11, compared with N1,361.50 on Monday, August 10. During the trading session, the currency fluctuated between N1,361 and N1,365.50 per dollar, with a weighted average rate of N1,364.8992.

This drop follows a period of high activity. Turnover reached $1.25 billion on August 7, before falling to $878.55 million on August 6 and $460.14 million on August 5. In July, daily turnover fluctuated widely, hitting $1.53 billion on July 21 and $1.16 billion on July 22, before dropping to $231.4 million on July 31.

Global Currency and Oil Dynamics

The decline in domestic FX turnover coincided with global market focus on US inflation, interest rates, and geopolitical tensions in the Middle East.

The US dollar index rose 0.1% to 99.89 in Asian trading, while Brent crude oil prices increased 0.9% to $89.69 a barrel. This rise followed an attack by Iran-backed Houthis on a cargo ship in the Bab el-Mandeb strait and a US military strike on a container ship off Pakistan.

In other global currency movements, the Japanese yen weakened 0.1% against the dollar to 159.44 yen, and the euro fell 0.1% to $1.1534. The British pound remained unchanged at $1.3505, while the Australian dollar declined 0.1% to $0.7056.

Domestic Reserves and Monetary Policy

Despite the drop in daily turnover, Nigeria's external reserves grew by approximately $198 million in the first eight days of August. Reserves rose to $52.141 billion on August 10, up from $51.943 billion on August 3.

This accumulation is slower than the $244 million growth recorded in the first six trading sessions of July, when reserves rose from $51.526 billion on July 3 to $51.769 billion on July 10.

The CBN has maintained a tight monetary policy stance to moderate inflation. At its 306th Monetary Policy Committee meeting on July 20 and 21, 2026, the central bank retained the Monetary Policy Rate at 26.5%.

Additionally, the CBN withdrew over N11.8 trillion in July and early August through OMO and Treasury Bills auctions to mop up excess banking system liquidity. This followed a week ended August 7, 2026, where total FX market turnover had surged 117% to $3.73 billion.