Nigeria's currency recorded a mixed performance at the start of the new trading week, appreciating slightly against the United States dollar at the official foreign exchange market while losing ground in the parallel market.
Latest figures released by the Central Bank of Nigeria (CBN) showed that the naira closed at N1,368.27/$1 on Monday, improving from N1,370.19/$1 recorded on Friday. The movement represents a gain of N1.92 for the local currency, signaling a modest recovery after last week's losses at the official market.
Despite the improvement, the naira failed to replicate the same performance in the parallel market, commonly referred to as the black market. There, the local currency depreciated by N5, exchanging at N1,410/$1 on Monday compared to N1,405/$1 at the close of trading last Friday.
The contrasting performances underscore the persistent disparity between Nigeria's official and informal foreign exchange markets, reflecting ongoing volatility in the country's currency market despite policy measures aimed at improving liquidity and enhancing exchange rate stability.
In a positive development for the economy, Nigeria's external reserves continued their upward trajectory. Data released by the Central Bank indicated that the country's foreign reserves rose to $51.52 billion as of July 3, 2026, extending recent gains.
A stronger external reserve position is generally viewed as a positive signal for the economy, as it enhances the country's capacity to meet international financial obligations, provides support for the naira, and strengthens investor confidence in Nigeria's economic outlook.
Monday's appreciation at the official market also marked a rebound after the naira came under pressure across major foreign exchange segments during the previous trading week.
Financial analysts say the direction of the exchange rate in the coming days will largely depend on the availability of foreign exchange, market demand for the dollar, global economic conditions, and policy interventions by the monetary authorities.
As one of the country's key economic indicators, the naira's performance continues to have a direct impact on import costs, business operations, inflation, and the overall cost of living for millions of Nigerians. Market participants will be watching closely to determine whether the currency can sustain its recovery at the official market while narrowing the gap with the parallel market.