Naira records sharpest daily loss since April, closes at N1,389/$

The naira recorded its sharpest daily loss since April after closing at N1,389 per dollar at the official foreign exchange market on June 24, 2026.

Data provided for the Nigerian foreign exchange market by the Central Bank of Nigeria (CBN) showed that the currency weakened by N16 from N1,373 per dollar recorded on June 23.

The decline came as the dollar strengthened broadly in global markets, while the naira traded within a N1,368 to N1,392 range during the session.

What the data is saying

The data shows that Wednesday’s closing rate represented a 1.2% depreciation in one day and marked the weakest closing level since April 7, when the naira also closed at N1,389 per dollar.

• The currency traded at a high of N1,392 per dollar and a low of N1,368 per dollar during the session.
• The weighted average rate stood at N1,380.08 per dollar, while the simple average rate was N1,380.46 per dollar.
• Interbank turnover rose slightly to $125.59 million from $125.31 million recorded on June 23.
• The number of interbank deals increased to 126, compared with 106 deals in the previous session.

Speaking earlier to Nairametrics, financial economist at Kwik Securities Ltd Mallam Muftau Yusuf, noted that a stronger dollar environment often creates challenges for emerging and frontier market currencies.

• “When global investors move toward dollar-denominated assets because of higher U.S. yields, emerging market currencies tend to face pressure. Nigeria is not insulated from these global developments,” Yusuf stated.

More Insights

The naira had traded largely within the N1,356 to N1,375 per dollar range for much of June before the sharp decline on June 24. The currency had strengthened to N1,356 per dollar on June 15 before reversing its gains in subsequent sessions.

• The naira closed at N1,369 per dollar on June 22.
• It weakened to N1,373 per dollar on June 23 before falling further to N1,389 per dollar on June 24.
• The currency had earlier reached N1,348.10 per dollar on April 22, one of its strongest levels in the period under review.
• It subsequently weakened to N1,383 per dollar on April 28 before moderating in May and early June.

The naira’s decline occurred as the U.S. dollar continued to gain strength against major global currencies. The dollar index, which measures the greenback against six major currencies, rose to a 13-month high of 101.8.

• The dollar strengthened against the euro, reaching its strongest level in 13 months at $1.1325.
• It traded at 161.73 yen, close to its highest level in more than four decades against the Japanese currency.
• The dollar’s strength pushed gold below $4,000 per ounce for the first time in more than seven months.
• Bitcoin also briefly fell below $60,000 for the first time since 2024.

The stronger dollar reflects expectations that U.S. interest rates could remain elevated, as traders reassessed the outlook for rate cuts amid a stronger U.S. economy and inflation concerns.

What you should know

The recent depreciation comes despite a significant improvement in Nigeria’s external reserve position.

• Nigeria’s foreign reserves recently rose above $51 billion, reaching their highest level since 2009.
• External reserves gained more than $1 billion in the first half of June 2026, supported by stronger foreign exchange inflows.

The CBN has maintained a relatively stable exchange rate framework in recent months through ongoing market reforms and improved liquidity conditions.

The CBN had projected a stronger reserve position for 2026, supported by improvements in the country’s external sector.