The Nigerian naira maintained its stability against the United States dollar at the official foreign exchange market on Monday, July 13, 2026, despite mounting global economic pressures that have strengthened the greenback and weighed on several emerging market currencies.

Latest data from the Central Bank of Nigeria (CBN) showed that the local currency closed at N1,379.6504 per US dollar, almost unchanged from its opening rate of N1,379.6201, reflecting another day of calm trading at the Nigerian Foreign Exchange Market (NFEM).

The relatively stable exchange rate came as demand for foreign currency remained subdued, while available dollar supply was sufficient to meet market needs.

Low FX demand keeps exchange rate steady

Market activity was largely muted, with foreign exchange transactions taking place within a narrow band of N1,378 to N1,381 per dollar throughout the trading session.

Analysts attributed the naira's resilience to the absence of significant demand pressure from international payment obligations and a balanced flow of foreign exchange into the official market.

Although trading volumes remained modest, interbank foreign exchange turnover recorded a notable increase. CBN data showed turnover rose by 21.14% to $86.14 million, compared with $71.04 million recorded in the previous trading session.

However, the number of completed interbank deals dipped slightly to 85 transactions, down from 87, suggesting that market participants adopted a cautious approach while awaiting fresh economic signals.

Foreign investors continue to drive dollar inflows

A report by Coronation Merchant Bank revealed that Nigeria attracted approximately $970 million in foreign exchange inflows last week, providing additional support for the local currency.

Foreign Portfolio Investors (FPIs) emerged as the biggest contributors, accounting for 30.29% of total inflows, closely followed by exporters and importers with 30.14%.

Non-bank corporate organisations contributed 26.49%, while the Central Bank supplied 6.93% of total inflows. Other market participants accounted for the remaining 5.40%.

The continued inflow of foreign exchange has helped improve liquidity in the official market and reduce pressure on the naira.

Global dollar strength still poses risks

Despite the naira's recent stability, analysts warn that external risks remain elevated.

The renewed global energy crisis has strengthened the US dollar as investors seek safer assets amid rising geopolitical tensions and inflation concerns.

Higher crude oil prices have also fuelled expectations that the US Federal Reserve could maintain an aggressive monetary tightening stance.

The yield on the two-year US Treasury note has climbed to its highest level in more than a year, while swap market data indicates investors have almost fully priced in another US interest rate hike in September.

A stronger dollar has already weakened major global currencies, including the euro, British pound and Japanese yen, creating additional challenges for African economies.

Analysts see stable outlook for the naira

Despite the uncertain global environment, analysts remain cautiously optimistic about the naira's short-term outlook.

According to Coronation Merchant Bank, sustained foreign exchange inflows and the CBN's continued interventions are expected to keep the currency trading within a relatively stable range.

However, they cautioned that underlying demand for foreign exchange remains strong and could continue to exert depreciation pressure if inflows weaken or global financial conditions deteriorate further.

For now, the naira continues to hold its ground, supported by improving liquidity, disciplined market management and steady investor inflows, even as global headwinds continue to test emerging market currencies.