WORLD · 25 Jul 2026 · 06:16 GMT ·1 min read

Nigeria's Currency Market Dynamics and Reserve Growth

The Nigerian naira closed at N1,367.76 per dollar in the official market on July 23, 2026, while the parallel market rate weakened to N1,407 per dollar.

NEUTRALITY 72 · BALANCED· 3 sources

Dailypost

The Nigerian naira closed at N1,367.76 per dollar in the official market on July 23, 2026, while the parallel market rate weakened to N1,407 per dollar. This 2.93 percent spread reflects ongoing volatility in foreign exchange liquidity. Total interbank turnover fell 19.76 percent to $334.13 million on July 23, 2026. Despite these pressures, Nigeria's external reserves hit a 17-year high of $52.03 billion on July 22, 2026. Coronation Merchant Bank analysts credit robust portfolio inflows for the currency's performance, though production challenges remain.

Context

Nigeria has faced persistent foreign exchange volatility throughout the first half of 2026. The naira averaged N1,365 per dollar during this period, supported by global crude oil prices and portfolio inflows.

Supportive perspectives

Nigeria's external reserves reached $52.03 billion on July 22, 2026, marking a 17-year high.
This reserve level represents a 35.6 percent increase from the $38.37 billion recorded during the same period in 2025.
Robust foreign portfolio inflows into the fixed-income market provided essential support for the currency, according to Coronation Merchant Bank.
Higher global crude oil prices helped offset the impact of weaker-than-expected production levels during the first half of 2026.

Critical perspectives

Total turnover in the interbank foreign exchange market declined by 19.76 percent to $334.13 million on July 23, 2026, down from $416.3 million a day earlier.
The number of transactions in the interbank foreign exchange market fell to 122 on July 23, 2026, down from 198 deals the previous day.
Nigeria's crude oil production faced challenges during the first half of 2026, with output levels falling below expectations despite the support from higher global prices.