By Seun Ibiyemi
The Nigerian naira closed the trading week ended May 22, 2026, with a mixed but largely stable performance across the foreign exchange market, as improved liquidity and continued policy support helped reduce extreme volatility, even though underlying demand pressures persisted.
Data from trading activities across the official and parallel markets showed that the naira fluctuated within a relatively tight range against the US dollar during the week, reflecting intermittent supply improvements and sustained interventions by the monetary authorities.
At the official foreign exchange window, the naira traded between ₦1,585 and ₦1,612 per US dollar during the week.
The currency opened the week at approximately ₦1,602/$1, strengthened midweek to around ₦1,585/$1 on improved dollar supply, and later weakened slightly to close near ₦1,610/$1 as demand from importers picked up toward the end of the week.
Market operators attributed the midweek appreciation to increased FX inflows from non-oil exports and remittances, as well as continued liquidity support from the Central Bank of Nigeria, which maintained its stance of smoothing short-term volatility in the market.
In the parallel market, the naira showed slightly wider fluctuations, trading between ₦1,640 and ₦1,685 per dollar during the week. It opened at about ₦1,665/$1, strengthened briefly to ₦1,640/$1 midweek amid reduced speculative demand, and later weakened again to around ₦1,680/$1 by the close of trading.
Traders reported that demand from retail importers, tuition payments, and travel-related FX needs contributed to periodic pressure on the street market, even as overall sentiment improved slightly compared to previous weeks.
Analysts pointed to several key factors behind the week’s mixed performance:
Improved FX liquidity from non-oil exports and diaspora remittances, Continued regulatory oversight and interventions by monetary authorities, Moderate easing of speculative demand midweek, Persistent import-related FX demand pressures.
Despite these supports, the market continued to reflect structural constraints, including limited export earnings diversification and ongoing dependence on imports, which kept demand for foreign currency elevated.
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Financial analysts maintained that the naira’s short-term stability suggests a gradual easing of panic-driven trading behavior.
However, they cautioned that sustained improvement will depend on stronger foreign exchange inflows, increased export productivity, and consistent policy execution in the FX market.
Overall, the week ended with the naira showing relative resilience rather than strong appreciation, signaling cautious optimism in market sentiment heading into the final week of May 2026.
