Nigerian Naira Recovers as Exchange Rate Gap Narrows

The Central Bank of Nigeria reported a recovery in the value of the naira against the US dollar starting August 4, 2026, following five consecutive sessions of decline. On Friday, August 1, the currency had closed at N1,368.22 per dollar in the official market and N1,425 in the parallel market, marking a weekly loss of N6.13 and N15 respectively.

By Monday, August 4, the naira gained 0.2 percent in the official market to trade at N1,364.83 per dollar, while the parallel market rate improved to N1,408. The margin between the two rates narrowed from N47 to N43 per dollar. By Wednesday, the official rate further strengthened to N1,362.55, though the parallel market shifted back to N1,425.

Governor Olayemi Cardoso announced on Tuesday that the spread between official and Bureau de Change rates has dropped below 2 percent. He attributed the currency's strengthening and the closing spread to sectoral reforms that have supported an increase in external reserves. As of August 3, 2026, Nigeria's external reserves were recorded at $51.94 billion, up slightly from $51.92 billion on July 30.