Naira Slips 0.12% to N1,347.94 as FX Trading Slows in November Opener

The naira opened the first trading session of November 2026 with a marginal depreciation across the foreign exchange market as trading activity moderated. Central Bank of Nigeria (CBN) data showed the dollar was quoted at N1,347.94 on Monday, N1.56 or 0.12 percent weaker than the N1,346.26 recorded on the last trading day of October 2026.

In the parallel market, the local currency held steady at N1,385 per dollar on Tuesday morning. The gap between the official and parallel market rates narrowed slightly to N38, or 2.82 percent, from N39, or 2.89 percent, on Friday.

Turnover falls at the interbank window

Trading activity moderated sharply. Total turnover at the interbank segment of the FX market declined by 63 percent to $21.77 million on Monday from $58.85 million on Friday. The number of deals fell by 68.06 percent to 23 from 72 over the same period.

NFEM figures for turnover and deals were not available as of the time of reporting. The latest available data showed turnover at the Nigerian Foreign Exchange Market window rose by 27.11 percent to $583.33 million on Friday from $458.91 million the previous day. The number of deals also increased by 2.02 percent to 252 from 247.

Reserves climb to $55.22 billion

Nigeria's external reserves, which give the CBN room to support the naira and meet external obligations, kept rising. They stood at $55.22 billion as of October 30, 2026, a 27.91 percent increase from $43.17 billion in the same period of 2025.

The stronger buffers came as net foreign exchange inflows into the economy improved in the second quarter of 2026, driven largely by autonomous sources. Net inflows rose to $21.09 billion in the second quarter from $20.30 billion in the preceding quarter.

Aggregate inflows, however, declined by 4.24 percent to $30.03 billion from $31.36 billion in the first quarter, while total outflows fell by 19.17 percent to $8.94 billion from $11.06 billion.

Inflows through the CBN dropped by 20.47 percent to $8.12 billion from $10.21 billion. Inflows through autonomous sources rose by 3.59 percent to $21.91 billion from $21.15 billion.

On the outflow side, transactions through the CBN declined by 35.89 percent to $4.77 billion from $7.44 billion, while outflows through autonomous sources increased by 15.51 percent to $4.17 billion from $3.61 billion.

Autonomous sources posted a net inflow of $17.74 billion, up from $17.53 billion in the preceding quarter. The CBN recorded a higher net inflow of $3.35 billion, compared with $2.77 billion in the first quarter.

Even with the better net inflows, average turnover at the NFEM declined by 7.56 percent to $530.42 million in the second quarter from $573.81 million in the first quarter, pointing to a moderation in average daily trading.

For importers and businesses sourcing dollars, the steady parallel market rate and a narrower gap between the two windows offer some cost predictability. The build-up in reserves also gives the CBN more headroom to defend the currency if pressure returns.