Foreign exchange turnover on the Nigerian Foreign Exchange Market (NFEM) fell to $185 million on August 11, 2026, marking the lowest level in 11 weeks as activity in the FX market thinned. This is according to data from the Central Bank of Nigeria’s (CBN) website. Checks by Nairametrics show that this is the lowest since May 25, 2026, when the total turnover stood at $175.34 million.
The sharp decline came despite the naira closing weaker at N1,365 per dollar on Tuesday, compared with N1,361.50 on Monday, as trading activity and the number of deals declined significantly. NFEM turnover fell to $184.99 million on August 11 from $646.51 million a day earlier, representing a decline of about $461.5 million.
The number of deals fell to 186 on August 11 from 348 on August 10, while interbank deals declined from 182 to 47. The naira traded between N1,361 and N1,365.50 per dollar on Tuesday, with a weighted average rate of N1,364.8992. The August 11 turnover was the lowest recorded since May 25, when NFEM turnover stood at $175.34 million.
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Turnover had reached $1.25 billion on August 7 before falling to $878.55 million on August 6 and $460.14 million on August 5. The latest decline highlights the sharp swings in activity in Nigeria’s official FX market, even as the naira remained within a relatively narrow trading range.
Global factors and reserves
The weaker turnover came as global currency markets remained focused on developments around US inflation, interest rates and renewed geopolitical tensions in the Middle East. The US dollar index rose 0.1% to 99.89 in Asian trading, while oil prices also increased amid renewed attacks on shipping routes in the Middle East.
Brent crude rose 0.9% to $89.69 a barrel following an attack by Iran-backed Houthis on a cargo ship in the Bab el-Mandeb strait and a US military strike on a container ship off Pakistan. The yen weakened 0.1% against the dollar to 159.44 yen, while the euro fell 0.1% to $1.1534.
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For everyday Nigerians trying to exchange money, this volatility means that a trip to the bank or bureau de change can result in vastly different rates depending on which day they show up. When liquidity dries up, the market becomes less responsive to demand, potentially squeezing those who need foreign currency urgently.
The British pound was unchanged at $1.3505, while the Australian dollar declined 0.1% to $0.7056. The developments in global currency and oil markets remain relevant to Nigeria given the importance of foreign exchange liquidity and crude oil earnings to the domestic economy.
NFEM turnover had shown stronger activity earlier in the month, with transactions reaching more than $1.24 billion on August 7 before declining sharply over the following two trading sessions. The CBN data also showed that the naira has traded around the N1,360-N1,370 range in recent sessions, after closing at N1,368 on July 31.
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In July, daily NFEM turnover fluctuated considerably, reaching $1.53 billion on July 21 and $1.16 billion on July 22, before falling to $231.4 million on July 31. The decline in NFEM turnover is also notable against the pace of external reserve accumulation. CBN data showed that Nigeria’s external reserves increased by about $198 million in the first eight days of August, reaching $52.141 billion on August 10 from $51.943 billion on August 3.
The August reserve gain, however, was slower than the increase recorded at the beginning of July. Reserves rose from $51.526 billion on July 3 to $51.769 billion on July 10, representing a gain of about $244 million in the first six trading sessions of that month. Nairametrics earlier reported that Nigeria’s foreign exchange market sustained robust activity levels in the week ended August 7, 2026, posting total turnover of $3.73 billion—a 117% surge from the prior week—signaling continued investor appetite for dollar positioning.
The central bank’s aggressive absorption of excess banking system cash through combined OMO and Treasury Bills auctions has seen more than N11.8 trillion withdrawn in July and early August alone. This comes as the CBN maintains a tight monetary policy stance aimed at moderating inflation and supporting macroeconomic stability. At its 306th meeting held in Abuja on July 20 and 21, 2026, the Monetary Policy Committee retained the Monetary Policy Rate at 26.5%.