Why Naira Is Depreciating Against US Dollar Again As Markets Exchange Rate Gap Widens to N46

• The naira closed at N1,378.43 per dollar at the official market and fell further in the black market
• Interbank foreign exchange turnover fell sharply by more than 62% to $78.71 million, as the CBN withheld fresh dollar intervention
• Analysts have provided insight into the depreciation of the naira despite rising FX reserves

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The naira is facing renewed pressure in the Nigerian forex market, especially in the parallel market, also known as the black market.

For the first time in weeks, the naira is now trading at the black market above N1,400 per dollar, closing on Thursday, July 9, at N1,425.

The parallel market rate represents a roughly N46 premium over the official rate, a divergence that reverses the near-convergence Nigeria achieved earlier in 2026 when the naira briefly traded around N1,370 to the dollar in February.

The naira has so far depreciated by about 3.9%.

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Naira in official market

Data from the Central Bank of Nigeria (CBN) showed the naira closed at N1,378.43 to the dollar at the Nigerian Foreign Exchange Market (NFEM), which is the official window, a gain of 64 kobo or 0.05% from the N1,379.07 recorded the previous session.

The marginal improvement, however, masked a steep drop in trading activity. Interbank foreign exchange turnover fell by over 62% to $78.71 million, down from $208.09 million the day before, while completed transactions declined from 150 to 106, signalling limited appetite and no fresh CBN intervention.

The naira also softened against other major currencies, settling at N1,846.82 per pound sterling and N1,576.10 per euro.

The CBN's published rates placed the Saudi Riyal at N367.16, the UAE Dirham at N375.31, the Chinese Yuan at N202.83, and the South African Rand at N84.19.

Why naira is depreciating at black market

Analysts attributed the currency's renewed difficulties primarily to seasonal factors.

As summer begins, demand for dollars tends to spike among Nigerians financing overseas education, holidays, medical treatment, and business travel, placing temporary but significant strain on supply.

The level of external reserves, which ordinarily signals CBN capacity to defend the naira, has not been sufficient on its own to contain the seasonal demand surge.

Analysts noted that reserves provide firepower rather than a guarantee, and that the apex bank's apparent decision to hold back intervention has left the market to clear at weaker rates.

Looking ahead, analysts said sustained exchange rate stability will hinge on a reliable flow of foreign currency from oil export revenues, diaspora remittances, and foreign portfolio investments, combined with continued confidence in Nigeria's ongoing foreign exchange reforms.

Without a meaningful pickup in dollar supply to counter the seasonal demand spike, analysts expect the naira to remain under pressure in the weeks ahead, regardless of the country's strong reserve position.

Tanzania bans use of dollar

Earlier, Legit.ng reported that the Bank of Tanzania prohibited the use of foreign currencies, including the US dollar, for domestic payments and transactions across the country.

Under the new directive, businesses and individuals are required to quote prices and complete payments exclusively in Tanzanian shillings for goods and services offered within Tanzania.

In a notice issued to the public, the central bank, through its governor, Emmanuel M. Tutuba, said the policy aims to reinforce the use of the national currency while noting that a limited number of foreign currency transactions remain permissible under the revised regulations.