Naira gains 32 kobo at official window, weakens to N1,360/$ in black market

The naira appreciated by 32 kobo against the US dollar at the official market on Thursday, October 22, 2026, but weakened on the black market. The local currency traded in opposite directions at Nigeria’s official and parallel foreign exchange markets.

At the Nigerian Foreign Exchange Market, NAFEM, the naira gained 32 kobo, or 0.02%, to close at N1,334.40/$1 from N1,334.72/$1. In the parallel market, it depreciated by N2 to N1,360/$1 from N1,358/$1 on Wednesday.

Bank desk and other currencies

At GTBank’s foreign exchange desk, the naira lost N3 against the dollar to settle at N1,343/$1 from N1,340/$1 in the previous session.

The local currency also recorded losses against other major currencies at the official market. Against the British pound, it depreciated by N10.55 to N1,798.28/£1 from N1,787.73/£1. It weakened against the euro, losing N7.12 to close at N1,506.41/€1 from N1,499.29/€1.

Turnover rises 148%

Activity in the interbank foreign exchange market increased significantly. CBN data showed that interbank foreign exchange turnover surged by 148% to $316.545 million from $127.628 million a day earlier.

The number of foreign exchange transactions also rose to 181 deals from 95 deals. The data points to higher trading activity even as the naira posted mixed results across currency pairs.

Outlook and market pressure

The naira could face renewed pressure as importers seek foreign currency ahead of the holiday season, while investors take profits on securities. Market participants said further intervention by the Central Bank of Nigeria may be needed in the coming week to ease pressure on the local currency.

The naira’s performance will depend partly on foreign exchange supply, demand from importers and other market participants, and the extent of intervention by the monetary authorities.

A Deutsche Bank report identified the naira as a currency attracting foreign investor interest and projected further gains against the US dollar as Nigeria’s external position strengthens. The German bank included Nigeria in its frontier foreign exchange monitor, citing the naira’s undervaluation and relatively high real interest rates as factors that could draw more foreign capital. Investors could also benefit from the interest rate gap between Nigeria and other markets through the carry trade, the bank said.

For Nigerian businesses and consumers, the mixed rates mean dollar costs remain sensitive to the parallel market, where the naira weakened. Importers facing holiday demand may see continued pressure on foreign exchange supply unless CBN intervention eases the market.