- The naira weakened by N4.75 against the dollar on Tuesday in the official foreign exchange market as trading activity declined sharply
- Nigeria’s external reserves climbed to $52.14bn as of August 10, 2026, a rise of nearly 30% compared to the same period last year
- Despite Tuesday’s dip, the naira posted a 0.58% gain in July 2026, placing it among Africa’s top 10 best-performing currencies
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigerian naira recorded a marginal decline against the US dollar on Tuesday, August 11, 2026, as trading activity in the official foreign exchange market dropped sharply.
Data from the Central Bank of Nigeria (CBN) showed that the naira weakened by N4.75, with the dollar quoted at N1,364.89 at the Nigerian Foreign Exchange Market (NFEM), compared with N1,360.14 on Monday.
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Source: Getty Images
The movement represents a 0.35 per cent depreciation in the naira’s value against the dollar.
In the parallel market, however, the naira remained stable at N1,425 per dollar.
Forex trading activity plunges
The decline in the naira came amid a significant reduction in activity in the interbank foreign exchange market.
Total turnover fell by 86.41 per cent to $29.06 million on Tuesday from $213.85 million recorded in the previous trading session.
The number of deals also dropped sharply, falling by 74.18 per cent to 47 transactions from 182 deals on Monday.
NFEM activity had already moderated in the previous session, with turnover falling 48.24 per cent to $646.51 million on Monday from $1.25 billion recorded on Friday.
The reduced trading volume highlights weaker market activity even as the naira continues to trade within a relatively narrow range.
Nigeria’s reserves climb to $52.14bn
Meanwhile, Nigeria’s external reserves continued their upward trajectory, reaching $52.14 billion as of August 10, 2026, according to CBN data.
The latest figure represents a 29.41 per cent increase from the $40.29 billion recorded on August 8, 2025.
The sustained rise in reserves provides the CBN with a stronger buffer to meet external obligations and support stability in the foreign exchange market.
The central bank also increased its foreign exchange sales to about $1.4 billion in July, compared with $320 million in June, as it moved to address seasonal demand pressures.
Analysts at Quest Merchant Bank said Nigeria’s external position remained positive, pointing to supportive oil prices, capital inflows and the monetary authorities’ policy framework as factors that could help strengthen reserves further.
Naira makes Africa’s top 10
Despite Tuesday’s depreciation, the naira recently featured among Africa’s 10 best-performing currencies, recording a 0.58 per cent gain against the US dollar in July 2026.
The currency strengthened from N1,376 per dollar at the end of June to N1,368 per dollar at the end of July.
While the naira’s monthly gain was smaller than those recorded by some of Africa’s leading currencies, its positive July performance placed it among the continent’s currencies that appreciated against the dollar.
Credit: NurPhoto/Contributor
Source: Getty Images
The contrasting movements underline the naira’s recent volatility. While the currency remains vulnerable to short-term fluctuations in the foreign exchange market, stronger external reserves and improved market conditions could provide greater support for the naira in the months ahead.
The latest data therefore presents a mixed picture: the naira weakened slightly in Tuesday’s trading, but its broader July performance and Nigeria’s stronger reserve position point to improving conditions in the country’s external sector.
Forbes names Africa’s 10 strongest currencies
Legit.ng earlier reported that a strong and stable currency remains one of the biggest indicators of an economy’s resilience, helping to curb inflation, lower import costs, attract foreign investment and strengthen consumer purchasing power.
Against a backdrop of global economic uncertainty, Forbes has released its ranking of Africa’s 10 strongest currencies for July 2026.
While Nigeria’s naira recorded a modest recovery during the month, it failed to secure a place among the continent’s strongest currencies.
Source: Legit.ng