Naira Defies Dollar Strength with Resilient Market
The Nigerian naira has defied expectations by maintaining its upward momentum in the foreign exchange market despite a strengthening US dollar. The naira appreciated by N18.09 week-on-week to close at N1,362.09 per dollar on Friday from N1,380.18 recorded the previous Friday, representing a 1.3 percent gain.
According to data published by the Central Bank of Nigeria (CBN), total turnover at the NFEM window surged by 119.9 percent to $4.2 billion on Thursday from $2.01 billion recorded on Monday. This indicates a significant increase in the volume of foreign exchange transactions taking place in the official market.
The naira's resilience is attributed to improved domestic liquidity, stronger external reserves, and sustained investor confidence in the CBN's foreign exchange reforms. Gross external reserves had increased to $52.52 billion as of July 17, 2026, from $50.47 billion at the end of May.
Manpreet Gill, chief investment officer for Africa, Middle East and Europe at Standard Chartered, said the recent appreciation of the US dollar has been driven largely by temporary factors. He expects US bond yields to ease over time, reducing support for the dollar.