Naira Falls to N1,334.72/$ as Official FX Turnover Rises 110%

The naira weakened by N1.07 against the US dollar to close at N1,334.72/$1 at the Nigerian Foreign Exchange Market on Wednesday, October 21, 2026. It closed at N1,333.65/$1 on Tuesday.

The local currency also depreciated against the pound sterling and euro at the official market.

Dollar, Pound, Euro Rates

The naira lost N3.04 against the British pound to close at N1,787.73/£1, compared with N1,784.69/£1 in the previous session. Against the euro, it weakened by N2 to N1,499.29/€1 from Tuesday’s closing rate of N1,497.29/€1.

Turnover and Deals Rise

Data from the Central Bank of Nigeria showed that interbank foreign exchange turnover increased by 110% to $127.63 million from $60.72 million. The number of foreign exchange deals also rose to 95 from 70, pointing to increased activity in the official market.

The naira remained stable in the parallel market, where it traded at N1,358/$1. It also traded flat at N1,340/$1 at the GTBank foreign exchange desk.

Other Currency Rates

The reported selling rates for other currencies on October 21 were: CFA N2.28; Yuan/Renminbi N199.93; Danish krone N200.51; Japanese yen N8.45; Saudi riyal N355.79; South African rand N81.56; Special Drawing Rights N1,810.02; Swiss franc N1,619.22; West African Unit of Account N1,805.95; and UAE dirham N363.37.

The naira’s recent relative stability has been supported by stronger formal remittance inflows and an increase in Nigeria’s external reserves, which provide a buffer against foreign exchange pressures. Market analysts expect the currency to maintain its current trend in the near term but have warned that rising government borrowing could pose risks to the outlook.

CBN Governor Yemi Cardoso has previously highlighted the importance of exchange rate stability in encouraging investment and supporting the development of financial products in a more predictable macroeconomic environment.

Deutsche Bank has identified the naira as a currency worth watching for foreign investors, forecasting further appreciation against the United States dollar as Nigeria’s external position improves. The German lender added Nigeria to its frontier foreign exchange monitor, pointing to the naira’s undervaluation and relatively high real interest rates as factors that could attract more capital. It sees the currency as an opportunity for investors seeking to profit from interest rate differences across markets, a strategy known as the carry trade.