Naira Weakens to N1,361.5/$ as FX Market Turnover Drops 57%
The naira recorded a slight loss against the US dollar on Wednesday at the Nigerian Foreign Exchange Market (NFEM). Data from the Central Bank of Nigeria (CBN) showed the local currency closed at N1,361.5/$, compared to N1,356.5/$ in the previous trading session. However, the bigger story was the sharp drop in market activity, with turnover falling by about 57%.
According to the CBN, intraday trading ranged between N1,357/$ and N1,361.5/$. Meanwhile, the simple average exchange rate settled at N1,360.13/$. In addition, NFEM turnover dropped to $54.29 million from $125.69 million recorded a day earlier. The number of completed deals also declined from 125 to 74. As a result, the figures point to weaker trading activity in the official foreign exchange market, even though the naira’s depreciation remained moderate.
At the global level, investors continued to favour the US dollar. The greenback stayed near a more than two-month high as markets increased bets on further interest rate hikes by the US Federal Reserve. At the same time, persistent inflation concerns strengthened expectations of additional monetary tightening later this year. Geopolitical tensions in the Gulf also boosted safe-haven demand for the dollar following renewed warnings by US President Donald Trump over Iran. Consequently, several emerging market currencies, including the naira, faced fresh pressure.
Despite the weaker exchange rate, Nigeria’s external reserves continued their upward climb. CBN data showed reserves rose to $50.89 billion as of June 16, 2026. The increase reflects sustained foreign currency inflows and stronger reserve accumulation.
Higher reserves improve the CBN’s ability to support market liquidity and boost confidence during periods of uncertainty. Notably, reserves have gained more than $1 billion in the first half of June. This follows earlier fluctuations, including a decline from above $50.08 billion on March 12 to $49.61 billion by March 23, 2026.
