SAT JUNE 20 2026-theGBJournal| Nigeria’s naira weakened modestly over the past week as sustained domestic demand for foreign exchange outweighed supportive external buffers, even as the country’s gross international reserves extended their longest streak of gains this year.
The local currency depreciated by 0.2% week-on-week to close at NGN1,365.50 per dollar, reflecting persistent demand pressures in the domestic FX market.
Despite the softer currency performance, Nigeria’s external reserve position strengthened further, with gross reserves rising by $529.70 million to $51.04 billion as of June 18, marking a sixth consecutive week of accumulation and reinforcing the Central Bank of Nigeria’s capacity to support market stability.
Sentiment in the non-deliverable forward market also turned weaker, with the naira posting losses across all maturities.
The one-month contract fell 0.4% to NGN1,391.35 per dollar, while the three-month tenor weakened 0.3% to NGN1,432.97.
The six-month contract declined 0.2% to NGN1,490.84, and the one-year forward eased 0.3% to NGN1,607.79 per dollar, indicating expectations of a gradual depreciation trajectory over the medium term.
Market participants nonetheless expect the naira to remain broadly stable in the near term, supported by resilient foreign portfolio inflows, improved investor confidence and a strong current-account surplus, factors that have helped underpin foreign exchange liquidity and bolster reserve buffers.
Analysts caution, however, that rising geopolitical risks remain a key downside threat.
A breakdown of the ceasefire between the United States and Iran could trigger renewed risk aversion and prompt foreign investors to pare exposure to emerging and frontier markets, including Nigeria.
In such a scenario, the Central Bank of Nigeria is expected to deploy calibrated interventions in the foreign exchange market to curb excessive volatility and preserve orderly market conditions.
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