The Nigerian naira recorded a fresh gain against the United States dollar on Tuesday, July 1, 2026, as improved liquidity in the official foreign exchange market boosted the local currency's performance. This appreciation follows a period of pressure last week due to heightened demand for foreign exchange, signaling a possible return to stability in the market.
Naira Appreciates at Official Market
Data released by the Central Bank of Nigeria (CBN) showed that the naira closed at N1,379.6842/$1 at the Nigeria Foreign Exchange Market (NFEM), improving from N1,383.6262/$1 recorded on Monday. This represents a modest appreciation of the local currency against the greenback as stronger dollar liquidity supported trading activities.
During Tuesday's session, the official exchange rate traded within a range of N1,370/$1 to N1,384/$1, marking some of the strongest rates recorded over the past five trading days. Market participants attributed the naira's rebound to increased foreign currency availability, which ensured that international payment obligations were adequately met.
Forex Turnover Surges by 20%
The official market also witnessed a significant rise in trading activity. Fresh foreign exchange data showed that interbank forex turnover climbed by 20 per cent to $269.898 million, up from $223.938 million recorded in the previous session. The increase highlights stronger participation by financial institutions acting as intermediaries for corporate customers seeking foreign exchange.
Despite the higher transaction value, the total number of interbank deals slipped slightly to 166, compared with 177 transactions recorded on Monday.
External Reserves Provide Additional Support
Nigeria's external reserves also continued their upward trend, offering additional support for investor confidence. The country's gross external reserves rose to $51.429 billion, driven by sustained inflows from key foreign exchange sources, particularly earnings from crude oil exports. This improvement comes even as the CBN has significantly reduced its direct intervention in the forex market and has reportedly stayed out of the official FX window for nearly two months.
Oil Market Remains a Key Factor
Meanwhile, global oil prices edged higher during Tuesday's trading session, although the broader outlook remains uncertain, according to a report by MarketForces Africa. Both Brent crude and US West Texas Intermediate (WTI) futures are still on course for their largest quarterly declines since the COVID-19 pandemic despite the day's gains.
Investors continue to monitor developments surrounding possible diplomatic talks between the United States and Iran, shipping activity through the Strait of Hormuz, and changing global supply expectations. Analysts say these factors will determine whether crude prices extend their recovery, a development that could further strengthen Nigeria's foreign exchange earnings and support the naira in the coming weeks.
Nigeria’s External Reserves Hit $51bn
Legit.ng earlier reported that Nigeria’s external reserves are at their highest level since 2009, reaching almost $51 billion despite the naira's slight depreciation in some segments of the foreign exchange market due to weaker dollar inflows. The CBN data showed the country’s foreign reserves increased to $50.96 billion as of June 17, 2026, from $37.74 billion recorded in the same period last year, an increase of $13.22 billion or 35.03%. The current level represents the highest in over 15 years since 2009, bolstering the CBN’s capacity to fulfil its international payment obligations and support the nation’s local currency.
