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Naira strengthens with improved dollar liquidity and rising foreign reserves
Photo: Businessday NG
2026-07-24 18:48   Economy   10

Naira strengthens with improved dollar liquidity and rising foreign reserves

The Nigerian naira showed resilience against the US dollar in both official and parallel markets, driven by enhanced foreign exchange liquidity and growing external reserves.In the official market, the naira appreciated marginally to N1,367.76 per dollar, a 0.14% gain from Wednesday's rate, while the parallel market saw a slight decline to N1,407 per dollar.This created a wider spread of 2.93% between official and black market rates.The interbank FX turnover dropped by 19.76% to $334.13 million, reflecting reduced trading activity.Analysts noted that the naira outperformed expectations in H1 2026, supported by stronger reserves ($52.03 billion), improved liquidity, and sustained foreign capital inflows.Despite weaker oil production earlier in the year, higher global crude prices offset some of the challenges.The Central Bank's interventions and robust external reserves continue to underpin currency stability.

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