The naira remained resilient in June, appreciating slightly against the dollar despite tighter domestic liquidity conditions, as stronger foreign exchange market activity and sustained interventions by the Central Bank of Nigeria (CBN) helped support the local currency, according to the Financial Markets Dealers Association (FMDA).
Data published by the CBN showed that the naira, which weakened to the lowest of N1,383.63 per dollar on June 29, 2026, has rebounded to N1,370.15/$1, marking a 0.98 percent or N13.48 gain at the NFEM.
On a daily basis the local currency appreciated by N2.26 as the dollar was quoted at N1,370.15 on Thursday from N1,372.41 quoted on Wednesday.
The FMDA’s June monthly report showed that the naira appreciated by 0.22 percent in the Nigerian Foreign Exchange Market (NFEM) during the month under review, even as the CBN intensified liquidity sterilisation operations and financial markets experienced increased demand for foreign exchange toward the end of June.
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According to the report, the mild pressure on the naira emerged following the maturity of private OMO bills, which increased demand for foreign exchange. However, improved market liquidity, stronger trading activity and interventions by the CBN helped offset the demand pressures.
Market turnover rose by about 45 percent during the month to more than $12.9 billion, underscoring stronger participation and improved liquidity in the official foreign exchange market.
Supporting the improvement in market conditions, Nigeria’s average external reserves increased by 4.09 percent to $50.68 billion, reflecting sustained foreign exchange inflows during the period.
The report also projected that Nigeria’s external position would strengthen further. It estimated that the country’s current account surplus, which stood at $4.98 billion in the first quarter of 2026, could rise to about $6.12 billion when second-quarter figures are released.
According to FMDA, the anticipated improvement is expected to be driven by higher crude oil prices recorded during most of the second quarter, increased crude oil production and sustained earnings from refined petroleum exports.
Although average Brent crude oil prices declined by 17.91 percent to $84.38 per barrel in June following easing geopolitical tensions in the Middle East, the report said current price levels remain supportive of Nigeria’s export earnings, current account balance and external reserves.
The report noted that progress towards a U.S.-Iran peace agreement and the de-escalation of tensions in the Middle East have eased global energy price pressures, a development that could support lower global inflation over the medium term while still leaving oil prices at levels favourable to Nigeria’s external sector.
Looking ahead, FMDA said improving external reserves and stronger foreign exchange market liquidity should continue to support asset quality and broader macroeconomic stability. However, it urged market participants to monitor oil price movements, global monetary policy developments and domestic inflation, as these remain key factors that could influence exchange rate stability and overall financial market conditions.
