The naira strengthened against the dollar in August as improved foreign exchange liquidity helped ease pressure on the currency.
The average exchange rate appreciated by 1.46% month on month to N1,353.41/$ from N1,373.43/$ in July, marking the second consecutive monthly improvement.
The News Chronicle reports that foreign exchange inflows into the Nigerian Foreign Exchange Market rose 19% month on month and 54% year on year to $5.2 billion in August, the highest level since October 2025.
The stronger dollar supply was supported by foreign portfolio investments, exporter receipts, local corporate participation and Central Bank of Nigeria interventions.
NFEM turnover also increased to $14.45 billion from $12.69 billion in July, while average daily turnover rose to $760.43 million.
Despite the monthly appreciation, the naira remained volatile during August, trading between N1,335.50/$ and N1,365.10/$.
Market analysts attributed the improvement mainly to stronger FX inflows but cautioned that sustained gains would depend on continued dollar supply and market demand.
For businesses, greater exchange rate stability could help reduce uncertainty around imported inputs, foreign obligations and other dollar denominated costs.
