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Nigeria naira depreciation, cash shortage, FX dip

Updated 3 times since CLSTR started tracking revisions of this situation.

What changed

2026-07-30 04:52 UTC → 2026-07-31 03:54 UTC · added removed

Late June 2026 saw the naira slip to roughly N1,392 per US dollar amid tight foreign‑exchange liquidity. By late July the Central Bank of Nigeria (CBN) highlighted a shortage of low‑value N100 and N200 notes, linking it to its Payments System Vision 2028 and urging continued acceptance. On 21 July Governor Olayemi Cardoso stressed that the scarcity reflected market demand, not a withdrawal, and noted inflation’s impact on purchasing power. The CBN reported a modest naira gain on 23 July, opening at N1,369.63 per dollar, while total FX turnover fell 24 % to $1.163 billion and the parallel market rate hovered near N1,415. Cash held outside banks dropped to ₦4.92 trillion on 27 July – a seven‑month low representing 89.1 % of currency in circulation and supporting the digital‑payments agenda. New data on 29 July showed foreign‑exchange reserves slipping to about $51.96 billion, just below $52 billion, as the official naira rate weakened to N1,364‑N1,366 per dollar. Interbank FX turnover surged 160 fell 4.2 % to $102.95 million, while net foreign liability rose to $90.2 billion in 2025. The same day $58.42 million and the CBN announced that foreign‑exchange parallel market traded near N1,410. Autonomous inflows reached a record accounted for 64.21 % of the $109.86 billion in 2025, a 13.8 % rise driven largely by non‑oil exports, capital imports and over‑the‑counter purchases. Net inflows grew annual FX inflows, while cash outside banks continued to $60.81 billion. A concurrent policy report flagged a decline in public confidence in Nigeria’s digital‑payments ecosystem, assigning shrink, indicating a trust‑resilience score return of 5.4 / 10 and citing frequent transaction failures and weak dispute‑resolution mechanisms as key concerns. The physical currency to the formal banking system. These developments underscore ongoing pressure on the naira, shrinking cash‑handling demand, a volatile FX environment, and challenges to the shift toward digital payments.

Versions

  1. 2026-07-31 03:54 UTC Nigeria naira depreciation, cash shortage, FX dip
  2. 2026-07-30 04:52 UTC Nigeria naira depreciation, cash shortage, FX dip
  3. 2026-07-29 06:55 UTC Nigeria naira depreciation, cash shortage, FX dip
  4. 2026-07-28 15:29 UTC Nigeria naira depreciation, cash shortage, FX dip

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