Nigeria's naira gained ground on Monday as the nation's external reserves climbed past the Central Bank's year-end target. Official figures showed reserves hit $51.06 billion as of June 19, 2026.
In the main foreign exchange market, the naira strengthened by N1.35. The dollar fell to N1,369.11 on Monday from N1,370.46 on Friday.
Interbank activity picked up sharply at the start of the week. Dealers executed 94 transactions on Monday, a jump of 59.32 percent from 59 deals on Friday.
Turnover in the interbank segment also climbed to $65.21 million. That represents a 63.47 percent increase from the previous session.
Activity had slowed toward the end of last week. Friday saw 201 interbank deals, down from 253 on Thursday, with turnover sliding 45.25 percent to $207.14 million.
In the parallel market, the naira picked up N5 to close at N1,395 per dollar. That's a 0.4 percent appreciation from N1,400 recorded on Friday.
But the gap between official and parallel rates widened slightly to N31 on Monday. It stood at N30 on Friday.
The reserve level surpassed the CBN's $51.04 billion target by a comfortable margin. Year-on-year, reserves jumped 32.62 percent from $38.50 billion in June 2025.
Quest Merchant Bank analysts studied the currency's performance over the month. They noted the naira appreciated 0.2 percent in the official market to N1,372 per dollar.
In the parallel segment, the currency gained 0.6 percent month-on-month to N1,390 per dollar. Both moves reflect improved market confidence, the analysts said.
Reserve positions across Africa tell a mixed story, however. South Africa's international liquidity dropped $29 million to $73.5 billion, hurt by weaker gold prices.
Egypt's reserves moved in the opposite direction. Net international reserves rose $125 million to $53.1 billion in May, boosted by higher domestic interest rates.
Rising rates have drawn foreign capital into Egypt's system. That influx continues to underpin the country's external position.
Quest Merchant Bank expects Nigeria's reserves to keep climbing. Stronger oil export inflows should drive the gains, analysts predicted.
Foreign investors remain keen on Nigerian assets, they added. Attractive yield opportunities are pulling capital into the market.
The combination of rising reserves and improving liquidity should stabilize the exchange rate. Sustained offshore inflows will provide critical support in coming months, according to the bank's outlook.
