Naira Falls to Four-Week Low as Stronger U.S. Dollar Puts Pressure on Nigeria’s Currency

The Nigerian naira slipped to N1,373 against the U.S. dollar at the official foreign exchange market on June 23, 2026, marking its weakest closing rate in four weeks. Latest data from the Central Bank of Nigeria (CBN) shows the local currency lost ground from N1,369/$ recorded a day earlier, extending a recent trend of gradual depreciation that has raised concerns among businesses and investors.

The latest decline highlights mounting pressure on the naira in the second half of June. Since trading at N1,356/$ on June 15, the currency has steadily weakened, shedding N17 or 1.25 percent within eight trading sessions. Market data shows the naira moved from N1,361.5/$ on June 17 to N1,365.5/$ on June 18, before closing at N1,371.5/$ on June 19 and eventually slipping further to N1,373/$ on June 23. The latest figure is only one naira away from the N1,374/$ level recorded on May 26, which remains the weakest official exchange rate in recent weeks.

Analysts attribute the currency’s decline largely to renewed strength in the U.S. dollar across global markets. The U.S. Dollar Index climbed to 101.39, its highest level in more than a year, as investors increasingly expect the U.S. Federal Reserve to maintain a tough stance on inflation. At the same time, major currencies such as the euro and Japanese yen also faced pressure, creating a challenging environment for emerging-market currencies, including the naira.

Speaking on the development, financial economist at Kwik Securities Ltd, Mallam Muftau Yusuf, noted that stronger demand for dollar-denominated assets often weakens currencies in developing economies. According to him, higher U.S. yields continue to attract global investors, reducing appetite for riskier markets and putting additional pressure on currencies such as the naira. He added that Nigeria remains vulnerable to these global financial shifts despite ongoing economic reforms.

The depreciation comes even as Nigeria’s external reserves continue to strengthen. The country’s foreign reserves recently surpassed $51 billion, their highest level since 2009, supported by improved foreign exchange inflows and ongoing market reforms. The CBN has projected reserves to remain above $51 billion throughout 2026, driven by stronger oil earnings, increased capital inflows, and reforms aimed at improving liquidity in the foreign exchange market. However, recent market movements suggest that global economic developments may continue to influence the naira’s performance in the months ahead.

source: nairametrics