Naira Gains as CBN Steps Up FX Interventions, Dollar Falls to N1,362
- The Nigerian naira closed at N1,362/$ at the official market on Monday after the Central Bank of Nigeria stepped in to defend the currency
- Total foreign exchange inflows for the week reached $1.01 billion, with the CBN supplying nearly half of the entire volume
- Nigeria's gross external reserves edged up to $52.03 billion, strengthening the CBN's ability to keep intervening in the market
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigerian naira remained relatively stable at the official foreign exchange market on Monday, trading around ₦1,362 to the US dollar after the Central Bank of Nigeria, CBN, stepped up interventions to support the local currency.
Fresh data from the Nigerian Foreign Exchange Market, NFEM, showed that the naira closed at ₦1,362.2064 per dollar, compared with the opening rate of ₦1,362.0866 recorded at the start of the trading week.
Source: Getty Images
Although the local currency posted a marginal decline during Monday’s session, analysts said the broader market trend points to improved stability, supported by increased dollar supply from the apex bank and sustained foreign exchange inflows.
Naira records weekly appreciation
The naira strengthened at the official market over the previous trading week, appreciating by 1.31% to close at ₦1,362.09 per dollar on Friday, compared with ₦1,380.18 recorded a week earlier.
The improvement followed renewed interventions by the CBN, which injected significant foreign exchange liquidity into the market to reduce pressure from persistent dollar demand.
Data released by the apex bank showed that eligible foreign exchange transactions were conducted within a range of ₦1,359 to ₦1,365.50 per dollar.
Broadstreet analysts said the movement in the spot exchange rate reflects relative stability in the official market, driven by the CBN’s interventions and steady inflows from foreign investors and other market participants.
Interbank FX turnover drops sharply
Despite the naira’s improved performance, activity in the interbank foreign exchange market weakened considerably.
Interbank FX turnover closed at $39.59 million on Monday, representing a decline of about 56% from the $89.08 million recorded at the end of trading on Friday, according to a report by MarketForces Africa.
The sharp reduction indicates lower transaction volumes among financial institutions, even as the official exchange rate remained largely stable.
Market analysts said reduced turnover could reflect cautious trading by banks and other authorised dealers as they monitor the direction of the naira and the CBN’s liquidity management strategy.
CBN emerges as largest source of dollar inflows
A report by Coronation Merchant Bank Limited showed that total foreign exchange inflows into the Nigerian market reached $1.01 billion during the week.
The CBN accounted for the largest share, contributing $500 million, or 49.36% of the total inflows.
Foreign portfolio investors followed with $260 million, representing 26.03%, while exporters contributed $140 million, or 13.85%.
Non-bank corporates supplied $90 million, accounting for 9.02% of total inflows. Other corporates contributed about $10 million, while inflows from individuals and foreign direct investors remained marginal.
Read also
Dangote breaks silence on fuel price hike, explains return to naira sales amid supply fears
External reserves provide additional support
Nigeria’s gross external reserves also recorded a modest improvement, rising by 0.17% to $52.03 billion from $51.94 billion within five days.
Coronation Merchant Bank said the increase, though modest, strengthens the CBN’s capacity to sustain its foreign exchange interventions in the near term.
Source: Getty Images
Analysts expect the naira to trade within a narrow range in the coming days, supported by continued FX inflows and the CBN’s willingness to supply dollars to the market.
However, sustained demand for foreign currency remains a key risk, with the strength of future interventions and inflows expected to determine whether the naira can maintain its recent gains.
Naira holds firm against dollar
Legit.ng previously reported that the Nigerian naira maintained its stability against the United States dollar at the official foreign exchange market on Monday, July 13, 2026, despite mounting global economic pressures that have strengthened the greenback and weighed on several emerging market currencies.
Latest data from the Central Bank of Nigeria (CBN) showed that the local currency closed at N1,379.6504 per US dollar, almost unchanged from its opening rate of N1,379.6201, reflecting another day of calm trading at the Nigerian Foreign Exchange Market (NFEM).
The relatively stable exchange rate came as demand for foreign currency remained subdued, while available dollar supply was sufficient to meet market needs.
Source: Legit.ng
