… As CBN sells $500m
… Banks raise rates for international transactions
The naira depreciated further against the dollar across foreign exchange (FX) market segments on Monday, despite record turnover and the Central Bank of Nigeria’s (CBN) $500 million intervention.
Data published by the CBN showed that the naira depreciated by N5.77, as the dollar was quoted at N1,367.61 on Monday, compared with N1,361.84 on Friday at the Nigerian Foreign Exchange Market (NFEM). The last time the naira traded at this level was on July 31, 2026, when it exchanged at N1,368.22 per dollar.
The highest quoted rate on Monday was N1,380 per dollar, N15 stronger than the highest rate of N1,395 recorded on Friday.
In the parallel market, also known as the black market, the local currency weakened by N5, or 0.36 percent, to close at N1,382 per dollar on Monday, compared with N1,377 per dollar on Friday.
The gap between the official and parallel market rates narrowed to 1.06 percent, or N14.39, on Monday from 1.11 percent, or N15.16, on Friday.
Although NFEM figures for deals and turnover were not available as of the time of reporting, total turnover at the window surged by 180.29 percent to a record $3.24 billion on Friday from $1.16 billion on Thursday. The number of deals also jumped by 52.63 percent, from 399 on Thursday to 609 on Friday.
Read also: Naira weakens N17.44 as interbank FX turnover hits record $1.01bn
In the interbank segment of the FX market, total turnover declined by 39.20 percent to $614.25 million on Monday from $1.01 billion on Friday. The number of deals also dropped by 36.19 percent, from 315 on Friday to 201 on Monday.
Nigeria’s external reserves, which provide the CBN with the capacity to defend the naira and meet external obligations, have maintained a steady growth trajectory, rising to $55.17 billion as of October 23, 2026.
This represented a 28.62 percent increase from the $42.90 billion recorded in the corresponding period of 2025, according to data published on the CBN website.
Meanwhile, Nigerian banks have raised their foreign exchange rates for international transactions to reflect prevailing market conditions.
First Bank of Nigeria increased its rate for international transactions by N20, from N1,375 on Friday to N1,395 on Monday.
The exchange rate for international payments using Stanbic IBTC naira cards stood at N1,375 per dollar on Monday.
Muhammad Sani Abdullahi, deputy governor of the CBN, said reserve adequacy and prospective portfolio inflows associated with Nigeria’s return to a J.P. Morgan bond benchmark were supportive of exchange-rate stability.
However, he cautioned that stronger foreign exchange demand, volatile oil prices and geopolitical disruptions around the Strait of Hormuz remained significant downside risks.
Read also: Local sourcing cuts manufacturers’ FX demand by $1bn
Abdullahi also warned that persistently excess reserves could weaken monetary policy transmission, while an abrupt tightening of liquidity could constrain credit and worsen non-performing loans, highlighting the need to balance liquidity management with financial stability.
Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.
