Naira Opens July Strong, Extends Gains Against the Dollar

Nigeria’s naira extended its winning streak against the US dollar as July began, appreciating by roughly N7.27 in the official foreign exchange market to close at N1,372.41 per dollar, up from N1,379.68 the previous session. The gains were attributed to an increased flow of dollars into the market alongside reduced demand for the greenback, a combination that has helped ease pressure on the local currency in recent trading sessions. 

The naira also strengthened against other major currencies, gaining ground against both the British pound and the euro in the same trading window. Meanwhile, Nigeria’s external reserves rose to roughly $51.46 billion by the end of the first half of 2026, reflecting additional foreign exchange inflows that have bolstered the country’s financial buffers. 

Interestingly, while the official market posted gains, the naira traded flat in the parallel market, where the dollar continued exchanging at around N1,395, highlighting a persistent gap between official and street-level exchange rates that remains a point of concern for everyday Nigerians and businesses reliant on FX access. 

The number of interbank foreign exchange deals also declined compared to the prior session, suggesting softer demand for dollars among customers, which analysts say has helped support the naira’s recent stability. Whether this positive momentum can be sustained through the rest of July will depend heavily on continued FX inflows and demand patterns, both of which remain sensitive to shifts in oil prices, remittance flows, and broader investor sentiment toward the Nigerian economy.