Naira closes at N1,322.50/$ as weekly FX turnover drops 33%

The naira strengthened against the US dollar during the week, gaining N13 as foreign exchange (FX) turnover at the Nigerian Foreign Exchange Market (NFEM) dropped by $1.05 billion.

The naira closed at N1,322.50/$ on Friday, September 4, 2026, unchanged from the previous trading session but stronger than the N1,335.50/$ recorded at the beginning of the week.

This represents a gain of N13, or 0.97 per cent, between Monday and Friday.

The naira began the week at N1,335.50/$ on August 31. It strengthened to N1,329/$ on September 1 and further improved to N1,324.50/$ on September 2.

The currency gained again to N1,322.50/$ on September 3 and maintained the same rate on Friday.

The Friday closing rate was supported by a weighted average exchange rate of N1,321.22/$. Trading during the session ranged between N1,319.45/$ and N1,324/$.

The naira has also strengthened compared with its position at the end of August. It closed at N1,337/$ on August 28, meaning it has gained N14.50, or 1.08 per cent, against the dollar over the period.

However, the improvement in the naira came despite a sharp decline in foreign exchange trading activity.

NFEM turnover fell to about $2.14 billion between August 31 and September 3, compared with approximately $3.19 billion recorded in the previous week.

This represents a decline of about $1.05 billion, or 33 per cent.

The latest weekly turnover included $228.52 million on August 31, $574.42 million on September 1, $658.46 million on September 2 and $674.38 million on September 3.

No NFEM turnover was reported for Friday, September 4, as of the time of the report.

Meanwhile, Nigeria’s foreign exchange reserves continued to improve during the week.

The reserves crossed the $54 billion mark, reaching approximately $54.08 billion on September 3.

Data from the Central Bank of Nigeria showed that reserves stood at $53.99 billion on September 2 and $53.90 billion on September 1.

The rise in reserves has been linked to stronger oil earnings and other foreign exchange inflows.

The latest reserve level has also surpassed the CBN’s projected reserve level of about $51.04 billion for the whole of 2026.

The naira’s recent gains have strengthened Nigeria’s foreign exchange position and provided a bigger buffer against external shocks, while improving the country’s ability to meet international financial obligations.

The naira had earlier broken below the N1,330/$ level on Tuesday, September 1, reaching N1,329/$, its strongest level since 2024.