The naira strengthened against the US dollar on Monday, September 7, as turnover in the Nigerian Foreign Exchange Market (NFEM) fell sharply by 78.4 per cent to N107.07 million.
Data from the Central Bank of Nigeria (CBN) showed that daily NFEM turnover declined from N495.70 million recorded on Friday, September 4, marking a significant drop in trading activity at the start of the new week.
Despite the decline in market volume, the naira appreciated by 0.19 per cent to close at N1,320/$, compared with N1,322.50/$ recorded at the previous trading session.
The latest turnover figure was the lowest recorded since April 2, when NFEM turnover stood at N73.90 million.
During Monday’s trading session, the currency traded between N1,318.50/$ and N1,322.50/$, while the weighted average exchange rate stood at N1,320.56/$.
The simple average exchange rate was N1,320.67/$, indicating relatively narrow movements around the closing rate.
A total of 119 deals were recorded during the session, while no interbank transactions were reported.
Trading activity in the foreign exchange market has remained volatile in recent weeks. NFEM turnover stood at N674.38 million on September 3 before declining to N495.70 million on September 4 and falling further on Monday.
The latest decline also contrasts sharply with some of the higher turnover levels recorded in August.
Nigeria’s foreign exchange market had recorded its strongest weekly turnover so far in 2026 in the week ended August 21, when combined transactions in the FX Spot and Derivatives markets surged by 146.12 per cent to $5.06 billion.
Meanwhile, Nigeria’s external reserves have continued to strengthen, crossing the $54 billion mark for the first time since December 2008.
The reserves stood at $54.08 billion as of September 3, 2026, up from $51.94 billion recorded on August 3.
The reserves rose to $52.06 billion on August 7, $52.32 billion on August 14, $52.83 billion on August 21 and $53.51 billion on August 28 before reaching the latest $54.08 billion position.
The current reserve level has also surpassed the CBN’s projected reserve position of approximately $51.04 billion for the whole of 2026.
The increase in external reserves comes amid the CBN’s tight monetary policy stance aimed at moderating inflation and supporting broader macroeconomic stability.
Earlier in the year, Nigeria’s foreign exchange market recorded its sharpest weekly turnover decline of 2026, with combined transactions in the FX Spot and Derivatives markets falling by 46.57 per cent to $1.631 billion in the week ended July 10.
The decline represented a $1.421 billion week-on-week reduction, the largest single-week drop in FX market turnover recorded so far in 2026.
Cumulative turnover reported by FMDQ for January to July 2026 stood at N426.51 trillion, equivalent to $310.18 billion, with foreign exchange transactions among the major drivers of activity alongside Open Market Operations (OMO) Bills.
