CBN Unveils New Dollar Rate as Naira Ends October Strongly, FX Turnover Falls
- The naira strengthened for a third straight session at the official market, closing at ₦1,346.91 per dollar after CBN intervention
- Official dollar turnover fell nearly 78%, while the parallel-market rate weakened to about ₦1,390 per dollar
- Nigeria’s external reserves dipped by $7 million to $55.257 billion, raising questions about the naira’s recovery
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigerian naira strengthened against the United States dollar for the third consecutive trading session on Thursday, October 29, 2026, extending its recovery at the official foreign exchange market.
However, the gains came amid a sharp decline in foreign exchange turnover and a slight drop in Nigeria's external reserves, raising questions about the sustainability of the currency's rebound.
Source: Getty Images
Data from the Central Bank of Nigeria (CBN) showed that the naira closed at ₦1,346.9108 per dollar at the Nigerian Foreign Exchange Market (NFEM), compared with ₦1,347.5259 recorded on Wednesday.
The appreciation represents a modest gain of approximately 0.05%, reflecting continued improvement in the local currency's performance.
Naira strengthens as CBN intervention supports recovery
During Thursday's trading session, the dollar exchanged between ₦1,343.50 and ₦1,363.50, highlighting fluctuations in demand and supply despite the naira's improved closing position.
The latest appreciation follows renewed intervention by the CBN, which reportedly sold $500 million to commercial banks during the week to improve dollar liquidity and ease pressure on the currency.
The intervention came after the naira weakened to around ₦1,367 per dollar earlier in the week, prompting concerns over renewed exchange rate volatility.
Dollar trading volume drops sharply despite gains
Despite the naira's recovery, trading activity in the official foreign exchange market declined significantly.
CBN figures showed that interbank dollar turnover plunged to $54.051 million on Thursday from $244.068 million on Wednesday.
The decline represents approximately 77.9%, indicating a substantial reduction in the volume of dollars traded between financial institutions.
Similarly, the number of transactions dropped to 74 from 151, suggesting reduced market activity.
The sharp decline in turnover indicates that the naira's appreciation occurred during a relatively quiet trading session, rather than amid increased dollar transactions.
Parallel market dollar rate widens exchange gap
While the naira appreciated at the official window, it weakened in the parallel market.
Bureau de Change operators quoted the dollar at approximately ₦1,390, compared with ₦1,385 previously, representing a depreciation of 0.36%.
The divergence widened the difference between official and unofficial exchange rates, highlighting persistent pressure outside the regulated market.
Meanwhile, the British pound declined to ₦1,790.86 at the NFEM, while the euro fell to ₦1,500.34.
Both currencies, however, recorded gains against the naira in the parallel market.
Source: Getty Images
Nigeria's foreign reserves decline after dollar sales
Nigeria's gross external reserves also recorded their first decline in approximately two months.
CBN data showed reserves slipped to $55.257 billion from $55.264 billion, representing a marginal decrease of $7 million.
The decline coincided with the apex bank's latest dollar intervention, although the figures alone do not establish how much of the movement resulted from the sales, MarketForces Africa reports.
As October draws to a close, attention is shifting to whether improved dollar liquidity and sustained market confidence can preserve the naira's recent gains.
Dollar exchange rate falls as naira gains
Legit.ng earlier reported that the naira strengthened against the US dollar across Nigeria's official and parallel foreign exchange markets on Wednesday, October 28, 2026, amid easing pressure on the local currency.
In the parallel market, the naira appreciated by N2 to close at N1,378/$1, compared with N1,380/$1 recorded in the previous session.
Source: Legit.ng
