By Seun Ibiyemi
The Naira maintained relative stability across the foreign exchange market in the week ended July 10, 2026, as improved liquidity in the official window and sustained interventions by the Central Bank of Nigeria (CBN) helped cushion the local currency against mounting demand pressures.
At the Nigerian Foreign Exchange Market (NFEM), the naira traded within a narrow range throughout the week, closing at about N1,375.94 against the United States dollar on Friday, July 10, according to market data.
The currency had hovered around the N1,373-N1,379 band in the preceding sessions, underlining a period of reduced volatility in the official market.
The local currency’s performance reflects the impact of the CBN’s reforms, which have sought to deepen liquidity, improve transparency and restore confidence in Nigeria’s foreign exchange market.
Analysts said the apex bank’s policy stance, coupled with stronger inflows from exporters and foreign portfolio investors, has contributed to the naira’s resilience in recent weeks.
Despite the relative calm at the official market, pressure persisted in the parallel market, where the dollar traded between N1,410 and N1,425 by the end of the week, highlighting continued demand for foreign currency outside the formal window.
The spread between the official and unofficial markets, though narrower than in previous years, underscores the challenge of meeting the foreign exchange needs of importers, manufacturers and other businesses.
Trading data showed that the naira weakened marginally on Friday, slipping by 0.09 per cent to close at N1,379.62 per dollar from N1,378.43 recorded a day earlier.
The depreciation came amid a decline in interbank foreign exchange turnover, which fell by about 10 per cent to $71.04 million from $78.71 million in the previous session.
Currency analysts noted that Nigeria’s external reserves position and the CBN’s ability to sustain foreign exchange interventions would remain crucial to the naira’s outlook in the second half of the year.
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They also pointed to the role of rising oil prices and increased foreign investment inflows in supporting exchange-rate stability.
Reuters reported that traders expect the naira to remain largely stable, buoyed by central bank support and improved inflows into the economy.
However, economists warned that lingering structural challenges, including strong demand for dollars, global economic uncertainties and fluctuations in crude oil prices, could continue to exert pressure on the domestic currency.
Looking ahead, market participants expect the naira to trade within its current range in the near term, provided foreign exchange liquidity remains adequate and the apex bank sustains its current monetary and exchange-rate policies
