Naira Falls Against Dollar As FX Market Records 77.7% Turnover Drop
- The naira lost N1.81 against the US dollar at NAFEM on Monday, September 28, closing at N1,331.32/$1
- FX turnover at the interbank market fell sharply to $24.73 million as the number of deals dropped from 108 to 37
- GTFund Managers analysts pointed to oil receipts and capital importation as factors that could support the naira going forward
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian naira slipped against the US dollar on Monday, September 28, as trading activity at the Nigerian Autonomous Foreign Exchange Market (NAFEM) slowed considerably.
The naira closed at N1,331.32 to the dollar, a decline of N1.81 or 0.14% from the N1,329.51 recorded in the previous trading session.
Source: Getty Images
The naira also lost ground against the Pound Sterling, closing at N1,766.01 per pound compared to N1,762.40 previously, a fall of N3.61.
Against the Euro, however, the currency gained N2.72, closing at N1,512.79 from N1,515.51 in the prior session.
FX turnover falls sharply
Interbank foreign exchange turnover dropped by 77.7% to $24.731 million on Monday, down from $111.064 million recorded on Friday.
The number of transactions also declined to 37 deals from 108 in the previous session, reflecting a significant slowdown in activity among banks and other financial institutions.
The drop came as the US dollar continued to hold firm in global markets, with investors keeping close watch on expectations around American monetary policy and interest rate decisions.
In the parallel market, the naira held steady at N1,370 to the dollar, while it also remained unchanged at N1,336 at the Guaranty Trust Bank foreign exchange desk.
Analysts expect relative naira stability
Market analysts at GTFund Managers said the naira could hold its ground despite the stronger dollar.
The analysts said in a note that they expect the US dollar to remain strong due to expectations of a policy rate hike, which could keep US fixed-income instruments attractive to foreign portfolio investors.
They added that improved inflows into Nigeria could support the naira, citing oil receipts, capital importation and an improved balance of trade.
The Central Bank of Nigeria has continued to signal its readiness to support the foreign exchange market, while the country's external reserves are approaching the $55 billion mark.
Source: Getty Images
CBN exchange rates
The CBN's indicative selling rates against the naira on Monday were:
- US Dollar: N1,331.33
- Pound Sterling: N1,766.01
- Euro: N1,512.79
- Swiss Franc: N1,600.35
- Yuan/Renminbi: N198.39
- South African Rand: N81.21
- UAE Dirham: N362.47
- Saudi Riyal: N354.61
- Japanese Yen: N8.47
- CFA: N2.31
- Danish Krona: N202.34
- SDR: N1,810.38
CBN announces weekly dollar purchase cap
Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) has maintained its $150,000 weekly foreign exchange purchase ceiling for Bureau De Change (BDC) operators, publishing new operational guidelines that govern how licensed BDCs can access dollars through authorised dealer banks in the NFEM.
The regulatory guidance, addressed to authorised dealer banks and licensed BDC operators, details the procedures for implementing a February 10, 2026 circular that restored BDC access to the official foreign exchange market.
The CBN explicitly prohibited authorised dealer banks from imposing exclusivity arrangements.
Source: Legit.ng
