The naira strengthened to N1,360.15/$ at the Nigerian Foreign Exchange Market (NFEM) on Wednesday, its strongest closing level since June 16.

Data from the Central Bank of Nigeria (CBN) showed that the currency gained N4.85 from the N1,365/$ recorded on Tuesday, representing a 0.36% appreciation against the dollar.

The latest gain extends the naira’s gradual recovery after renewed pressure in the foreign exchange market in July.

The currency has now strengthened by N21.35, or 1.55%, from the N1,381.50/$ recorded on July 17. It has also gained N14.35, or 1.04%, from its July 21 close of N1,374.50/$.

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The latest movement has taken the currency closer to levels last recorded in mid-June, although it remains above the N1,356.50/$ recorded on June 16.

What the data is saying

The naira’s latest appreciation continues a relatively stable performance in the official foreign exchange market during August, with the currency strengthening from N1,365/$ on August 3 to N1,360.15/$ on August 12.

  • The naira closed at N1,365/$ on August 3 before settling at N1,363.11/$ on August 5 and N1,365.10/$ on August 6.
  • It subsequently strengthened to N1,364/$ on August 7 and N1,361.50/$ on August 10.
  • The currency closed at N1,365/$ on Tuesday before gaining N4.85 on Wednesday.
  • From the N1,368/$ recorded on July 31, the naira has gained N7.85, representing a 0.57% appreciation.

The August recovery follows a period of weakness that saw the naira depreciate through much of July, before the currency began to regain ground in the second half of the month.

  • The naira closed at N1,369/$ on July 1 and weakened to N1,379/$ by July 7.
  • It fell further to N1,381.50/$ on July 17 before recovering to N1,374.50/$ on July 21.
  • The exchange rate subsequently strengthened to N1,369/$ on July 22 and N1,361/$ on July 24.
  • It briefly weakened to N1,368.50/$ on July 30 before closing July at N1,368/$.

The subsequent gains have reversed part of the losses recorded earlier in July and pushed the official exchange rate below most of the levels recorded during that month.

More insights

Nairametrics earlier reported that foreign exchange turnover on the NFEM fell to $185 million on August 11, marking an 11-week low as activity in the official FX market thinned.

  • The dollar also came under pressure globally on Thursday after US inflation data reduced expectations of a near-term Federal Reserve interest rate hike.
  • US consumer prices increased 0.1% in July, in line with economists’ expectations, prompting money markets to reduce the probability of a September rate hike to 40% from 54% a week earlier.

The dollar index, which measures the greenback against six major currencies, was flat at 100 on Thursday but remained on course for a 0.4% weekly gain.

What you should know

Nairametrics earlier reported that Nigeria’s foreign exchange market sustained robust activity levels in the week ended August 7, 2026, posting total turnover of $3.73 billion—a 117% surge from the prior week—signaling continued investor appetite for dollar positioning.

This comes as the CBN maintains a tight monetary policy stance aimed at moderating inflation and supporting macroeconomic stability.