The naira recorded modest gains against the US dollar in both the official and parallel foreign exchange markets on Monday, while Nigeria’s external reserves continued to climb.
In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira closed at N1,346.90 per dollar on August 21, 2026, compared with N1,347.63 on August 20, according to Central Bank of Nigeria data.
Bureau de Change (BDC) operators quoted the dollar at N1,400, compared with N1,405 on August 21. The N5 gain represents a 0.36% appreciation.
The parallel-market movement leaves the naira trading about N53.10 weaker than the NAFEM rate, highlighting the continued gap between Nigeria’s official and unofficial foreign exchange markets. The British pound on the other hand remained at N1,860, while the euro traded at N1,560 while the Canadian dollar also held at N1,055.
The stability suggests that the week’s movement in the parallel market was largely driven by the dollar-naira exchange rate rather than a broad repricing of foreign currencies.
External Reserves Rise to $52.66 Billion
CBN data showed Nigeria’s external reserves rose to $52.658 billion as of August 19, from $52.583 billion a day earlier representing a 0.14% rise.
The continued accumulation of reserves provides additional foreign exchange buffers for the Central Bank of Nigeria as it manages liquidity and seeks to improve stability in the foreign exchange market.
Despite the latest gains, the naira remains subject to significant pressure in the foreign exchange market as the difference between the NAFEM rate of N1,346.90/$ and the parallel-market rate of N1,400/$ was about N53.10/$ as of August 24.
The relatively narrow movement in both markets suggests a period of short-term stability, but the persistence of a rate differential indicates that underlying foreign exchange supply and demand pressures have not disappeared.
