The naira appreciated by N14.74, or 1.09 percent, against the dollar in the official foreign exchange market on Tuesday, recovering from five consecutive days of weakness. The Central Bank of Nigeria said the dollar was quoted at N1,352.87 on Tuesday, compared with N1,367.61 on Monday at the Nigerian Foreign Exchange Market. In the parallel market, the naira held steady at N1,382 per dollar, according to the CBN. The gap between official and parallel rates widened to 2.2 percent, or N30, from 1.09 percent, or N15, on Monday.
The CBN's foreign exchange interventions were supported by a strengthening of Nigeria's external reserves, which reached an 18-year high of $55.26 billion as of October 26, 2026, according to data published by the CBN. The reserves increased by 28.30 percent from $43.07 billion recorded on October 27, 2025. These reserves give the CBN the capacity to support the naira and meet the country's external payment obligations, the central bank said.
Trading activity in the interbank segment moderated, with total turnover declining by 11.48 percent to $543.74 million on Tuesday from $614.25 million on Monday, the CBN reported. The number of deals also fell by 1.99 percent, from 201 on Monday to 197 on Tuesday. At the NFEM window, total turnover had declined by 61.29 percent to $1.25 billion on Monday from $3.24 billion on Friday, while the number of deals dropped by 29.56 percent, from 609 to 429.
In the second quarter of 2026, total foreign exchange inflows fell by 4.24 percent to $30.03 billion from $31.36 billion in the first quarter, according to a CBN report, while 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, but inflows through autonomous sources rose by 3.59 percent to $21.91 billion from $21.15 billion. The average exchange rate strengthened to N1,365.95 per dollar in the second quarter from N1,384.48 in the first quarter, representing a 1.36 percent appreciation.
For savers and importers, a stronger naira means foreign currency savings lose less local currency value and import costs decline, while exporters and those earning in dollars face lower naira revenues.