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The Nigerian naira opened the week relatively strong against the United States dollar, with the local currency trading around N1,357.61 per dollar at the official Nigerian Foreign Exchange Market (NFEM) window and about N1,420 per dollar at the parallel market. This represents an improvement for the naira compared with the previous week's N1,365.69 per dollar.
The appreciation has been linked to improved foreign exchange liquidity and supply conditions in the official market. A live USD/NGN rate source put the dollar at about N1,358.30 as of the early hours of August 17, while other market data placed the currency around the N1,358 level.
Proshare reported that the naira had appreciated by 59 basis points at the official market to N1,357.61/$, while the parallel-market rate remained at N1,420/$. The difference reflects continued segmentation between the two foreign exchange channels, although the spread remains relatively contained compared with periods of severe market volatility.
The Central Bank of Nigeria (CBN) reported that the naira's performance comes amid stronger external reserves and recent changes by the CBN aimed at improving liquidity and efficiency in Nigeria's financial markets. Nigeria's external reserves rose to $52.19 billion as of August 12, 2026, their highest level in 17 years.
As trading progresses on Monday, August 17, the official NFEM rate and parallel-market quotations could change depending on dollar supply, demand from importers and other FX users, CBN interventions and broader global currency movements. The naira's performance has significant implications for Nigerians buying or selling dollars outside the official market.
The naira's exchange rate strength has been a focus of attention in recent weeks due to concerns over inflation and the impact of the COVID-19 pandemic on the economy. The CBN has implemented various measures aimed at improving the stability of the naira and promoting economic growth.
Nigeria's foreign exchange market has been subject to significant volatility in recent years due to a combination of factors including a decline in oil prices, a decline in foreign exchange reserves, and disruptions to oil production. However, the current exchange rate strength suggests a more stable outlook for the naira.
The CBN has implemented various measures aimed at improving the stability of the naira and promoting economic growth, including the introduction of the Investors and Exporters (I&E) window and the establishment of the Nigerian Autonomous Foreign Exchange Fixing (NAFEX) window. These measures have helped to attract more investors to the country and improve the supply of dollars in the market.
In addition, the CBN has also implemented measures aimed at promoting the growth of the non-oil sector of the economy, including the introduction of the Micro, Small and Medium Enterprises (MSME) development fund and the establishment of the Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) platform.
The naira's exchange rate strength has significant implications for the country's economy and for Nigerians buying or selling dollars outside the official market. As trading progresses on Monday, August 17, the official NFEM rate and parallel-market quotations could change depending on dollar supply, demand from importers and other FX users, CBN interventions and broader global currency movements.