SAT JUNE 06 2026-theGBJournal| Nigeria’s naira strengthened for a second consecutive week, gaining 1.0% against the U.S. dollar in the official foreign-exchange market to close at NGN1,361.00/USD, as robust offshore inflows linked to the Central Bank of Nigeria’s Open Market Operation (OMO) auction helped offset prevailing domestic demand pressures.
Market participants attributed the currency’s appreciation largely to foreign portfolio inflows generated by Tuesday’s OMO sale, which boosted hard-currency liquidity and improved supply conditions in the foreign-exchange market.
The inflows came amid sustained investor interest in Nigeria’s high-yield fixed-income instruments, reinforcing confidence in the naira and easing pressure on the local currency.
Supporting the positive sentiment, Nigeria’s gross external reserves rose by $456.73 million to $50.04 billion as of June 4, 2026, extending their upward trajectory for a fourth consecutive week.
The continued accumulation of reserves is expected to strengthen the Central Bank’s capacity to support market liquidity and absorb potential external shocks, while providing additional backing for exchange-rate stability.
The improvement in foreign-exchange fundamentals was also reflected in the derivatives market, where forward contracts recorded broad-based gains across all tenors. The one-month forward rate appreciated by 0.8% to NGN1,385.94/USD, while the three-month contract strengthened by 0.9% to NGN1,423.93/USD.
Longer-dated contracts posted even stronger gains, with the six-month forward rate advancing 1.0% to NGN1,477.71/USD and the one-year contract rising 1.2% to NGN1,585.65/USD.
The synchronized appreciation across the forward curve signals improving market expectations for naira stability over the medium term and suggests investors are pricing in continued foreign-exchange inflows and tighter liquidity management by monetary authorities.
The naira’s performance comes as policymakers seek to consolidate gains from ongoing reforms aimed at improving market transparency, attracting foreign capital and rebuilding external buffers.
With reserves now back above the $50 billion threshold and foreign participation in local debt markets remaining strong, analysts expect the currency to remain supported in the near term, although sustained stability will depend on the durability of portfolio inflows and broader external market conditions.
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