SAT AUG 15 2026-theGBJournal| The naira strengthened 0.5% week-on-week to N1,358.25 per dollar, supported by improved foreign-currency supply.
The appreciation extended into the forward market, where the naira strengthened by around 0.5% across the major tenors. The one-month forward appreciated to N1,380.62/$, while the three-month contract rose to N1,418.41/$.
Further along the curve, the six-month forward strengthened to N1,471.91/$, while the one-year contract appreciated to N1,578.86/$.
The firmer spot and forward rates point to improved FX liquidity and a more balanced supply-demand dynamic, although sustained naira strength will ultimately depend on the durability of dollar inflows and the CBN’s management of market liquidity.
Reserves rise above $52 billion
Nigeria’s gross external reserves also strengthened during the week, rising by $201.90 million to $52.26 billion as of August 13, 2026.
The increase provides an additional buffer for the foreign-exchange market and reinforces the improvement in external liquidity conditions. Higher reserves, alongside stronger FX supply, could help reduce near-term pressure on the naira and improve investor confidence in the currency market.
The naira, meanwhile, enters the new week on firmer footing, supported by better dollar supply and rising reserves. If those conditions persist, they could provide some relief for foreign investors and strengthen the case for increased offshore participation in local fixed-income assets.
The key risk for markets remains the interaction between government borrowing, CBN liquidity sterilisation and investor demand. A combination of heavy bond issuance and additional OMO supply could keep yields volatile, even as improving FX liquidity supports the broader investment backdrop.
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