Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
The Nigerian naira recorded a fresh depreciation on Tuesday, July 7, 2026, falling to ₦1,379 per dollar in the Nigerian Foreign Exchange Market (NFEM), according to data released by the Central Bank of Nigeria (CBN).
The indicative exchange rate rose slightly to ₦1,379 per dollar from ₦1,371 per dollar on Monday, representing an ₦8 depreciation for the local currency. The slide marks one of the more pronounced single-day movements the official market has recorded in recent weeks, reversing a relatively stable run through much of late June and early July.
In the parallel market, the naira similarly weakened, with street traders quoting the dollar at ₦1,405, up from ₦1,400 on Monday. Bureau de change operators in Lagos and Abuja attributed the uptick largely to sustained demand from importers and travellers, even as dollar supply in that segment remained tight.
Despite the depreciation across both markets, the margin between the parallel and official rates narrowed to ₦26 per dollar, down from ₦29 the previous session. A tighter gap between official and black-market rates typically signals reduced arbitrage incentive and discourages round-tripping by dollar speculators, reflecting growing confidence that the NFEM window is offering rates genuinely reflective of market conditions — a key objective of the CBN's ongoing FX reforms.
Foreign exchange activity at the NFEM slowed during the trading session, as turnover dropped by 24.4 per cent to $41.7 million from $54.2 million recorded the previous day. Market watchers will now be looking to the CBN's subsequent interventions, including any fresh dollar sales to authorised dealers, and incoming trade and reserves data to gauge whether Tuesday's slide is a temporary blip or the start of a fresh bout of pressure on the local currency.
The naira had, in the days prior, shown signs of firming, with the official rate dipping below the N1,370 mark earlier in the week on the back of improved liquidity in the interbank market. Tuesday's reversal suggests that stability remains fragile and that gains recorded in one session can be quickly eroded in the next as underlying supply constraints persist.
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