SAT AUG 08 2026-theGBJournal| Nigeria’s naira began August on a modestly stronger footing, gaining 0.3% against the dollar in the week to N1,365.65, as portfolio inflows following the Central Bank of Nigeria’s (CBN) open-market operation auction helped offset local demand for foreign currency.
The appreciation from July’s N1,369.09 close marks a relatively stable start to the month for the currency, with investor flows providing support despite continued demand pressure in the foreign-exchange market.
The currency’s resilience has been reinforced by an improvement in Nigeria’s external liquidity position.
Gross external reserves rose by $89.70 million to $52.03 billion as of August 6, from $51.92 billion at the end of July.
The increase extends the buffer available to the Central Bank of Nigeria as it manages currency-market liquidity and seeks to maintain orderly trading conditions.
Forward-market pricing also strengthened alongside the spot naira.
The one-month forward rate appreciated 0.3% to N1,387.94/$, while the three-month contract rose 0.3% to N1,425.90/$. Six-month and one-year contracts also gained 0.3%, to N1,479.72/$ and N1,586.83/$ respectively.
The broadly parallel movement across the forward curve points to continued confidence in the currency’s near-term stability, although the premium embedded in forward rates indicates that investors continue to price in some degree of naira depreciation over a longer horizon.
The latest market performance comes as foreign portfolio investment flows become an increasingly important source of support for the naira.
Higher-yielding local instruments, particularly following recent monetary operations, have continued to attract foreign investors seeking returns in Nigeria’s domestic markets.
Analysts at Cordros Research expect the currency to remain broadly stable in the near term, citing resilient portfolio inflows, stronger investor confidence and a widening current-account surplus as key supports.
The combination of rising reserves, steady portfolio inflows and improving external balances offers the naira a stronger starting position for August than it had at the beginning of previous periods of heightened currency volatility.
The key test, however, will be whether foreign inflows remain sufficiently strong to absorb domestic dollar demand as trading activity and corporate foreign-exchange requirements pick up through the month.
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