Naira gains N14.74 as CBN interventions and $55.26bn reserves support official market

The naira appreciated by N14.74, or 1.09 percent, in the official foreign exchange market on Tuesday, ending five consecutive days of losses. The Central Bank of Nigeria (CBN) interventions and stronger external buffers supported the local currency.

CBN data showed the dollar was quoted at N1,352.87 on Tuesday at the Nigerian Foreign Exchange Market (NFEM), compared with N1,367.61 on Monday. In the parallel market, also called the black market, the naira steadied at N1,382 per dollar. The gap between official and parallel rates widened to 2.2 percent, or N30, from 1.09 percent, or N15, on Monday.

Interbank turnover falls

Activity moderated in the interbank segment. Total turnover declined by 11.48 percent to $543.74 million on Tuesday from $614.25 million on Monday. The number of deals fell by 1.99 percent, from 201 on Monday to 197 on Tuesday.

NFEM data on turnover and deals for Tuesday were unavailable as of reporting. Total turnover at the NFEM window had declined by 61.29 percent to $1.25 billion on Monday from $3.24 billion on Friday. The number of deals dropped by 29.56 percent, from 609 to 429 over the same period.

Reserves hit $55.26bn

Nigeria's external reserves, which give the CBN capacity to support the naira and meet external obligations, maintained an upward trajectory. They reached an 18-year high of $55.26 billion as of October 26, 2026.

CBN data showed reserves increased by 28.30 percent from $43.07 billion recorded on October 27, 2025. This strengthened the country's external buffer amid pressure on the foreign exchange market.

A CBN report showed total foreign exchange inflows fell by 4.24 percent to $30.03 billion in the second quarter of this year from $31.36 billion in the first quarter. Outflows declined by 19.17 percent to $8.94 billion from $11.06 billion.

Foreign exchange inflows through the CBN fell 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. Autonomous sources recorded a net inflow of $17.74 billion, compared with $17.53 billion in the first quarter. The CBN's net inflow increased to $3.35 billion from $2.77 billion.

Market averages and peer currencies

Average turnover at the Nigerian Foreign Exchange Market declined by 7.56 percent to $530.42 million from $573.81 million in the preceding quarter. The average exchange rate of the naira strengthened to N1,365.95 per dollar in the second quarter from N1,384.48 in the first quarter, a 1.36 percent appreciation during the review period.

Other emerging-market currencies were mixed during the quarter. The Chinese renminbi and Russian ruble appreciated by 1.74 percent and 5.33 percent, respectively, supported by export earnings and other market factors. The South African rand depreciated by 0.79 percent amid global risk aversion linked to uncertainty in the Middle East and domestic concerns over anti-immigration demonstrations.

The official rate recovery and higher reserves give the CBN more room to defend the naira. The wider gap between official and parallel rates remains a key signal for consumers and businesses pricing dollars.