The naira strengthened further at the Nigerian Foreign Exchange Market (NFEM), closing at N1,350 per dollar on Monday, August 17, 2026, its strongest level since April.
The latest performance represents an N8.25, or about 0.6 per cent, appreciation from the N1,358.25/$ recorded on August 14, according to foreign exchange data from the Central Bank of Nigeria (CBN).
The naira has maintained a strengthening trend in recent weeks, appreciating from N1,368/$ at the end of July to N1,350/$ on August 17, representing a gain of about 1.3 per cent.
The latest closing rate is the strongest recorded since April 22, when the currency closed at N1,348.10/$.
Naira trades within narrower range
Data from the NFEM showed that transactions on Monday were conducted within a range of N1,347 and N1,361 per dollar.
The weighted average exchange rate stood at N1,349.54/$, while the simple average was N1,350.98/$.
The naira also strengthened from N1,356.50/$ recorded on August 13 to N1,350/$ on August 17.
A total of 178 interbank transactions were recorded during Monday’s session, with interbank turnover estimated at $437.53 million.
The performance points to continued relative stability in the official foreign exchange market, with the naira trading within a narrower range compared with some of the wider fluctuations recorded earlier in the year.
Global dollar weakness provides support
The naira’s recent gains have come amid weakness in the US dollar against several major global currencies.
The dollar has been pressured by changing expectations about US monetary policy following softer economic indicators, including weaker retail sales and labour-market data.
The euro was trading around $1.1581, while sterling stood at approximately $1.3548. The Australian dollar and New Zealand dollar also recorded gains against the US currency.
However, domestic foreign exchange conditions remain a key factor in determining the naira’s performance.
The currency’s latest appreciation also coincides with a further easing of Nigeria’s headline inflation rate. Inflation declined to 15.43 per cent in July from 15.91 per cent in June, according to the National Bureau of Statistics.
Month-on-month inflation also fell to 1.57 per cent in July from 1.66 per cent in June.
FX market activity rebounds
The naira’s appreciation comes after a period of subdued activity in the official FX market.
NFEM turnover fell to $185 million on August 11, its lowest level in 11 weeks, before market activity improved the following day, when turnover reached $607.47 million.
Nigeria’s foreign exchange position has also received support from rising external reserves. The country’s reserves reached $52.02 billion on July 20, the highest level since January 2009.
The CBN had earlier projected that external reserves would reach $51.04 billion in 2026, supported by stronger oil earnings, FX market reforms and improved external inflows.
The combination of increased reserves, improved FX market conditions and lower inflation could provide further support for the naira, although the currency’s sustainability will continue to depend on foreign exchange liquidity, oil earnings and broader global currency movements.
