N1,364/$1: Naira Appreciates Against US Dollar Despite Pressure
- The naira closed at N1,364.83/$1 on Monday, August 4, gaining N3.39 against the US dollar at the official market
- Total dollar turnover at the official market jumped more than 132%, climbing from $58.99 million to $137.05 million in a single session
- A Lagos-based FX trader linked the naira's performance to CBN interventions, stronger crude oil output, and improved dollar inflows
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian naira opened the new week with gains against the US dollar at the official foreign exchange market on Monday, August 4, 2026, as a sharp rise in trading activity pointed to improved dollar supply.
Figures from the Nigerian Foreign Exchange Market (NAFEM) showed the naira closed at N1,364.83 to the dollar, up from N1,368.22 recorded at the end of Friday's session, a gain of N3.39 or 0.25%.
Source: Getty Images
The naira did not hold its ground across all currencies, however.
It lost 10 kobo against the British pound, settling at N1,837.89 per pound compared to N1,837.79 previously, and shed six kobo against the euro to close at N1,573.93 against N1,573.87 in the prior session.
Rates at other markets held firm.
The naira traded at N1,405 per dollar in the parallel market, while the GTBank forex counter quoted N1,374 per dollar, both unchanged from Friday.
Trading volumes surged dramatically during the session. Total dollar turnover at the official market reached $137.05 million, more than double the $58.99 million recorded on Friday, representing a rise of over 132%.
The number of completed interbank deals at the Nigerian Foreign Exchange Market (NFEM) window climbed to 138 from 67 in the previous session, signalling a strong pickup in participation among authorised dealers, The Sun reports.
Analysts and Traders Point to Liquidity, Oil Inflows
Lagos-based foreign exchange trader Abdullahi Aliyu said the naira's recent resilience reflects a combination of CBN market support, better crude oil production figures, and favourable global oil prices, all of which have helped lift dollar inflows from Nigeria's oil exports.
Aliyu said:
"The CBN has been active in supplying dollars into the market. Also, improved crude oil production and supportive international oil prices have boosted FX inflows from oil exports."
He cautioned that the market's direction in the months ahead would depend on whether those inflows remain strong enough to satisfy demand, particularly during the typically high-pressure final quarter of the year.
Source: Getty Images
Market analysts also pointed to the CBN's tight monetary policy stance as a key factor drawing foreign portfolio investors into naira-denominated assets.
Snapshot of the value of the naira in the official market on Monday.
- CFA – N2.39
- Chinese Yuan/Renminbi – N202.11
- Danish Krona – N210.53
- Euro – N1,573.93
- Japanese Yen – N8.70
- Saudi Riyal – N363.38
- South African Rand – N82.70
- Special Drawing Rights (SDR) – N1,864.77
- Swiss Franc – N1,686.86
- Pounds Sterling – N1,837.89
- US Dollar – N1,364.83
- West African Unit of Account (WAUA) – N1,865.14
- UAE Dirham – N371.60
Nigeria’s reserves
Earlier, Legit.ng reported that Nigeria's external reserves have climbed to approximately $48.5 billion, reflecting a stronger foreign exchange position and reaching their highest level in more than a decade.
The reserves have increased by about $2.94 billion since the beginning of the year, rising from $45.56 billion recorded on January 1.
This represents a year-to-date growth of 6.45%, underscoring improved external liquidity and stronger reserve buffers.
Source: Legit.ng
