Nigeria’s currency market showed signs of growing resilience in June 2026 as the naira recorded only a marginal decline despite a significant increase in foreign exchange trading activity. Data from the Central Bank of Nigeria (CBN) revealed that the naira closed the month at N1,381 per dollar, compared to N1,366 per dollar at the beginning of June, representing a depreciation of about 1.1 percent. While the local currency weakened slightly, analysts say the movement reflects a more stable and transparent market environment than the sharp fluctuations witnessed in 2024 and early 2025.
Throughout the month, the naira traded within a relatively controlled range, signaling improved market stability. The currency strengthened to a monthly high of N1,356 per dollar on June 15 before slipping to N1,389 per dollar on June 24. It later recovered part of those losses to close the month at N1,381 per dollar, suggesting that pressures in the foreign exchange market were largely contained despite ongoing demand for dollars.
A key highlight of June was the strong level of trading activity in the official market. The June 30 trading session recorded an interbank turnover of $269.9 million, while overall Nigerian Foreign Exchange Market (NFEM) volumes reached some of the highest levels seen this year. Trading turnover surged to $985.56 million on June 15, $923.64 million on June 25, and $910.78 million on June 29. The strong volumes indicate improved dollar liquidity, increased market participation, and growing confidence among investors and businesses.
The positive trend comes as the CBN continues to implement reforms aimed at improving transparency, enhancing price discovery, and attracting foreign exchange inflows. Despite June’s slight depreciation, the naira remains significantly stronger than it was a year ago. On June 30, 2025, the currency traded at N1,532 per dollar, meaning it has appreciated by about N156 or 10.2 percent over the past 12 months. Analysts attribute this improvement to tighter liquidity management, increased diaspora remittances, stronger foreign portfolio investments, and efforts to curb speculative demand for foreign currency.
Looking ahead, market experts believe the focus should shift from exchange rate management to expanding sustainable sources of foreign exchange. They argue that higher oil production, stronger non-oil exports, and increased foreign direct investment will be crucial in maintaining long-term stability. Analysts at Cordros Research expect the CBN to sustain its liquidity support and market intervention strategies in the third quarter, particularly as seasonal import demand and global economic developments continue to influence the market. With Nigeria’s external reserves now exceeding $51 billion, optimism is growing that stronger buffers and ongoing reforms will help preserve stability in the foreign exchange market in the months ahead.
source: The sun
