SAT AUG 29 2026-theGBJournal| The naira appreciated by 0.7% week-on-week to N1,338.01/USD, buoyed by increased offshore supply stemming from participation in the week’s Open Market Operations (OMO) auction, providing further support to the currency in the foreign-exchange market.
The weekly gain underscores the continued influence of dollar liquidity on naira performance, with offshore flows helping to ease pressure on the local currency and support a firmer exchange rate.
The development comes as market participants continue to monitor foreign-exchange supply conditions and the Central Bank of Nigeria’s liquidity-management operations.
In the forwards market, the naira also strengthened across the curve, signalling improved expectations for the currency over the near to medium term.
The naira appreciated by 0.6% to N1,361.59/USD in the 1-month contract, while the 3-month contract gained 0.6% to N1,451.27/USD.
The currency also appreciated by 0.6% in the 6-month contract to N1,451.27/USD, while the 1-year forward gained 0.6% to N1,556.72/USD.
Meanwhile, Nigeria’s gross external reserves increased by USD478.45 million to USD53.31 billion as of 27 August 2026, strengthening the country’s external liquidity position and providing an additional buffer for foreign-exchange market stability.
The rise in reserves, alongside improved offshore dollar supply, could help underpin the naira in the near term if foreign-exchange liquidity remains supportive.
However, sustained currency appreciation will depend on the durability of these inflows and broader external-sector conditions.
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