The Nigerian naira posted gains against the US dollar on Tuesday, July 21, 2026, as the foreign exchange market recorded a massive single-day turnover of $1.5 billion, up 87.63% from $816.79 million the previous day.
According to data from the Central Bank of Nigeria (CBN), the dollar fell to N1,375.31 in the official Nigerian Foreign Exchange Market (NFEM), a gain of N4.80 (0.35%) from N1,380.11 the previous day.
Parallel Market Follows Trend
In the informal market, the naira also strengthened to N1,400 per dollar, up N12 from N1,412 the prior week. The gap between the official and parallel rates narrowed to 1.8%, down from 2.54% the previous day.
Deal volumes rose significantly. The number of transactions at the NFEM increased by 16.79% to 313, while interbank turnover climbed 21.19% to $322.66 million.
Reserves at 17-Year High
Nigeria’s external reserves reached a 17-year high of $52.02 billion as of July 20, 2026. CBN Governor Olayemi Cardoso, speaking at the BusinessDay 14th Annual CEO Forum in Lagos, linked the reserve gains to reforms introduced since the current leadership took office.
Cardoso noted that net reserves have risen substantially from about $3 billion when the team started, to around $40 billion recently. He emphasised that the reforms have helped create a more transparent FX market and laid the groundwork for increased investment and long-term economic growth.
The strong single-day turnover and rising reserves suggest improving liquidity conditions in the official market. For businesses and consumers, this could mean more predictable access to foreign exchange and reduced pressure on the naira in the near term, although analysts remain cautiously optimistic given ongoing global economic uncertainties.
