Naira Loses Against Dollar at Official Foreign Exchange Market
- The naira weakened by N1.07 against the US dollar to N1,334.72/$1 at the official market on Wednesday
- The local currency also depreciated against the pound sterling and euro, closing at N1,787.73/£1 and N1,499.29/€1, respectively
- Interbank foreign exchange turnover rose by 110% to $127.63 million, according to data from the Central Bank of Nigeria
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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 weakened against the US dollar, pound sterling and euro at the Nigerian Foreign Exchange Market (NFEM) on Wednesday, October 21, 2026.
The local currency lost N1.07 against the dollar to close at N1,334.72/$1, compared with N1,333.65/$1 recorded on Tuesday.
Source: Getty Images
Data showed that the naira also depreciated against the British pound, losing N3.04 to close at N1,787.73/£1 from N1,784.69/£1 recorded in the previous session.
Against the euro, the naira weakened by N2 to N1,499.29/€1, compared with Tuesday's closing rate of N1,497.29/€1.
However, the local currency remained stable in the parallel market, where it traded at N1,358/$1. It also traded flat at N1,340/$1 at the GTBank foreign exchange desk.
FX turnover rises by 110%
Data from the Central Bank of Nigeria (CBN) showed that interbank foreign exchange turnover increased by 110% to $127.63 million from $60.72 million.
The number of foreign exchange deals also rose to 95 from 70, indicating increased activity in the official market.
The naira's recent relative stability has been supported by stronger formal remittance inflows and an increase in Nigeria's external reserves, which provide a buffer against foreign exchange pressures.
Market analysts expect the currency to maintain its current trend in the near term but have warned that rising government borrowing could pose risks to the outlook.
CBN Governor Yemi Cardoso has previously highlighted the importance of exchange rate stability in encouraging investment and supporting the development of financial products in a more predictable macroeconomic environment.
Source: Getty Images
Other currency selling rates
The reported selling rates for other currencies on October 21 were:
- CFA: N2.28
- Yuan/Renminbi: N199.93
- Danish krone: N200.51
- Japanese yen: N8.45
- Saudi riyal: N355.79
- South African rand: N81.56
- Special Drawing Rights (SDR): N1,810.02
- Swiss franc: N1,619.22
- West African Unit of Account (WAUA): N1,805.95
- UAE dirham: N363.37
Deutsche Bank predicts further naira gains
Earlier, Legit.ng reported that Deutsche Bank has identified the naira as a currency worth watching for foreign investors, forecasting further appreciation against the United States dollar as Nigeria's external position improves.
The German multinational lender added Nigeria to its frontier foreign exchange monitor, pointing to the naira's undervaluation and relatively high real interest rates as factors that could attract more capital into the country.
The bank sees the currency as an opportunity for investors seeking to profit from interest rate differences across markets, a strategy known as the carry trade.
Source: Legit.ng
