The naira came under renewed pressure this week as weaker dollar supply in the foreign exchange market triggered fresh depreciation across trading windows. Despite rising external reserves, reduced liquidity continues to weigh on market stability, keeping traders cautious and exchange rates volatile.
According to data from the Central Bank of Nigeria (CBN), the naira weakened by N5.08 week-on-week at the Nigerian Foreign Exchange Market (NFEM), closing at N1,363.83 per dollar on Thursday. This marks a 0.4% decline from the previous week’s closing rate of N1,358.75. On a daily basis, the currency also slipped by N1.78, reflecting steady but persistent pressure throughout the trading week.
Market activity slowed significantly during the week, with interbank FX trading showing reduced participation. The number of deals fell by 30.58% week-on-week to 84 transactions, while total turnover dropped sharply by 45.06% to $70.42 million. Analysts suggest the decline in liquidity and trading activity signals reduced dollar availability in the official market.
At the NFEM window, overall turnover reached $607.89 million on June 10, 2026, but this still represented a 29.12% decline compared to the previous day. Despite the slowdown, transaction volumes remained relatively active compared to earlier in the month, indicating that market participants are still engaging, albeit more cautiously, amid fluctuating supply conditions.
In the parallel market, the naira also weakened, falling to N1,409 per dollar from N1,400, widening the gap between official and street rates to N46. The growing disparity highlights ongoing pressure in Nigeria’s FX system, as liquidity constraints continue to drive divergence between market segments and shape short-term currency sentiment.
source: Leadership