Naira closes June at N1,376/$ despite intra-month volatility

The naira ended June 2026 at N1,376 per United States dollar in the official foreign exchange market, closing the month slightly weaker despite experiencing significant fluctuations during the period.

Data from the Central Bank of Nigeria’s (CBN) website showed the currency settled at N1,376/$ on June 30, compared with N1,366/$ at the start of the month, representing a depreciation of N10, or about 0.7%.

The performance demonstrates continued volatility in Nigeria’s foreign exchange market, although the naira remained considerably stronger than its level a year earlier amid ongoing reforms by the CBN.

What the data is saying

CBN data showed the naira traded within a relatively wide range during June, reflecting changing market conditions.

• The naira appreciated to its strongest level of N1,356/$ on June 15 before weakening to a monthly low of N1,389/$ on June 24, a swing of N33.
• It recovered modestly in the final trading sessions to close the month at N1,376/$.
• The June 30 trading session recorded an interbank turnover of $269.90 million, while no NFEM turnover was reported for the day at the time of filing this report.

Market liquidity remained robust throughout the month, with NFEM turnover reaching $985.56 million on June 15, $923.64 million on June 25, and $910.78 million on June 29.

The data suggests that while exchange rate volatility persisted during the month, the foreign exchange market continued to record healthy trading activity.

More Insights

The naira’s June performance was relatively stable when compared with the previous month and significantly stronger than its position a year ago.

• The currency closed May 2026 at N1,372/$, indicating a marginal month-on-month depreciation of N4.
• On a year-on-year basis, the naira appreciated from N1,532/$ on June 30, 2025, representing a gain of about N156, or 10.2%.
• The stronger annual performance has been supported by improved market transparency, tighter liquidity management, increased diaspora remittances, stronger foreign portfolio inflows and measures aimed at curbing speculative demand for foreign exchange.

Higher foreign exchange inflows from oil exports and continued reforms in the official market have also helped moderate exchange rate pressures despite sustained demand from manufacturers and importers.

Although the naira weakened slightly during June, its ability to remain within a relatively narrow trading band compared with previous periods points to improving market stability.

Experts’ views

Financial analysts say the naira’s June performance demonstrates that the foreign exchange market has become more resilient, although sustaining stability will require stronger dollar inflows from exports and foreign investment.

Speaking earlier to Nairametrics, financial economist at Kwik Securities Ltd, Mallam Muftau Yusuf, said the relative stability of the exchange rate reflects improved confidence in the market and the effectiveness of ongoing monetary reforms.

According to him, the major challenge is no longer exchange rate management but ensuring that Nigeria generates sufficient foreign exchange through increased oil production, non-oil exports and foreign direct investment.

• “The exchange rate has become more predictable than it was a year ago. What is needed now is sustainable foreign exchange earnings that can support long-term stability,” he has consistently maintained.

For his part, economist Dr. Femi Ojelabi, said the narrowing gap between official and parallel market rates has reduced speculative activities that previously fueled sharp currency depreciation.

According to him, market participants are increasingly relying on the official window because price discovery has become more efficient.

He also argued that exchange rate stability should now be complemented with policies that stimulate domestic production.

He noted that while a stable naira improves investor confidence and business planning, manufacturers and exporters also require lower production costs, improved infrastructure and easier access to credit.

• “Exchange rate stability is positive for businesses, but it should translate into lower inflation and improved productivity for the economy to fully benefit,” Ojelabi said.

The experts also said the naira continues to respond to shifts in foreign exchange demand and supply, but recent trends indicate that volatility has moderated significantly compared with the sharp swings experienced in 2024 and early 2025.

They also expect the CBN to maintain its liquidity management and intervention strategy in the third quarter as seasonal import demand and global market developments continue to influence the foreign exchange market.

What you should know

The CBN has continued to implement reforms aimed at improving transparency and liquidity in Nigeria’s foreign exchange market, including measures to unify exchange rates and attract foreign capital inflows.

• Nairametrics recently reported that Nigeria’s foreign reserves rose above $51 billion, reaching their highest level since 2009.
• External reserves gained more than $1 billion in the first half of June 2026, supported by stronger foreign exchange inflows.

The CBN has maintained a relatively stable exchange rate framework in recent months through ongoing market reforms and improved liquidity conditions.