Naira slips 0.15% at NAFEM as FX turnover crashes 84.1%

The naira fell 0.15% against the dollar at the official NAFEM market on Monday, October 19, closing at N1,333.76. Interbank foreign exchange turnover dropped 84.1% to $40.975 million, with deals falling to 59.

The local currency also weakened against the pound sterling and the euro, even as it held steady at the parallel market and at the GTBank foreign exchange desk.

Official market rates

At NAFEM, the naira closed at N1,333.76 per dollar, compared with N1,331.76 in the previous session. That was a drop of N2 or 0.15%. Against the pound sterling, it fell by N15.85 to N1,778.30. Against the euro, it shed N6.77 to close at N1,497.41.

At the parallel market, the naira held firm at N1,358 per dollar, unchanged from the previous session. It also remained steady at N1,340 per dollar at the GTBank foreign exchange desk.

Trading activity at the interbank level fell sharply. Turnover declined 84.1% to $40.975 million from $258.426 million recorded in the preceding session, according to Central Bank of Nigeria data. The number of deals dropped to 59 from 135.

Deutsche Bank view

Despite Monday's dip, Deutsche Bank said the naira has room to appreciate further. The international lender added Nigeria to its frontier foreign exchange monitor, describing the naira as undervalued and offering attractive carry. In a note issued on Monday, October 19, the bank's strategists and economists pointed to favourable inflation-adjusted interest rates as a key factor supporting the naira's appeal to investors.

Deutsche Bank also noted that the naira had risen by nearly 8% against the dollar so far in 2026, placing it among the top 10 best-performing currencies out of 144 tracked by Bloomberg. The bank said the outlook for further gains will depend on the sustainability of foreign exchange inflows, foreign investor participation, and domestic dollar supply.

Analysts say the short-term direction of foreign exchange inflows will depend on sustained foreign portfolio investment and a recovery in domestic sources of dollar supply.

Other rates and regulation

The following selling rates were reported for selected currencies at the official market on Monday: US dollar N1,333.76, pound sterling N1,778.30, euro N1,497.41, Swiss franc N1,617.66, SDR N1,807.11, WAUA N1,806.48, UAE dirham N363.13, South African rand N81.17, Riyal N355.42, Yuan/Renminbi N199.64, Danish krone N200.30, CFA N2.28, and Yen N8.42.

The Securities and Exchange Commission was planning stricter regulations for online forex and contracts for differences (CFDs) providers serving retail investors. The proposed rules would set minimum paid-up capital requirements based on the type of business operated by each company. They would also require brokers to keep customers' funds separate from their own.

For Nigerian businesses and consumers, the official market dip and the sharp fall in turnover point to a market still sensitive to dollar supply. The parallel market rate holding at N1,358 per dollar keeps the gap with the official rate in focus.