Naira strengthens to N1,350/$, strongest level since April

The naira strengthened to N1,350 per dollar on August 17, 2026, its strongest closing level since April 22, as the currency continued to gain ground against the US dollar at the Nigerian Foreign Exchange Market (NFEM).

According to foreign exchange data on the Central Bank of Nigeria’s (CBN) website on Monday, the naira appreciated from N1,358.25/$ on August 14 to N1,350/$ on August 17, representing a gain of N8.25 or about 0.6%.

The latest appreciation extends the naira’s recent strengthening trend, with the currency moving from N1,368/$ at the end of July to N1,350/$ by August 17.

Checks by Nairametrics show that the latest performance is the strongest since April 22 when the naira closed at N1348.1/$.

What the data is saying

The latest NFEM data showed that the naira closed at N1,350/$ on August 17, with trades during the session ranging between 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 closing rate was stronger than the N1,358.25/$ recorded on August 14 and N1,356.50/$ on August 13.
• The naira has strengthened from N1,368/$ on July 31 to N1,350/$ on August 17, representing an appreciation of about 1.3%.
• The August 17 session recorded 178 interbank deals, with interbank turnover of about US$437.53 million.

The latest movement indicates continued relative stability in the official foreign exchange market, with the naira trading within a narrower range compared with some of the wider movements recorded earlier in the year.

More Insights

The naira’s recent performance comes amid broader movements in global currency markets, with the US dollar trading near multi-month lows against several major currencies.

• The dollar’s weakness has been linked to changing expectations around US monetary policy following softer economic data, including weaker retail sales and job market figures.
• The euro traded at about $1.1581 in early Asian trading, close to the two-month high of $1.1614 recorded on Monday.
• Sterling stood at about $1.3548, close to its three-month peak.
• The Australian dollar gained 0.11% to $0.71119, while the New Zealand dollar traded around $0.5902.

Investors have reduced expectations of near-term US monetary tightening following weaker economic indicators and mild inflation readings.

The global dollar movement provides an external backdrop to the naira’s recent performance, although domestic foreign exchange conditions remain important in determining the local currency’s direction.

• The naira’s latest gain also comes as Nigeria’s headline inflation rate declined further to 15.43% in July 2026 from 15.91% in June, according to data released by the National Bureau of Statistics.

The July inflation figure represents a 0.48 percentage-point decline from the previous month.

On a month-on-month basis, headline inflation eased to 1.57% in July from 1.66% in June.

What you should know

Last week, NFEM turnover fell to $185 million on August 11, the lowest level in 11 weeks, as market activity thinned.

The number of deals dropped to 186 on Tuesday from 348 on Monday, while interbank deals declined from 182 to 47.

• Market activity improved on Wednesday, with 409 deals recorded and NFEM turnover of $607.47 million.
• Nairametrics earlier reported that Nigeria’s external reserves rose to $52.02 billion on July 20, 2026, reaching their highest level since January 2009 and surpassing the Central Bank of Nigeria’s (CBN) projected level for the full year.

In December, the CBN projected the external reserves to rise to $51.04 billion in 2026, supported by stronger oil earnings, foreign exchange (FX) market reforms, and improved external inflows.