Dollar Exchange Rate Falls As Naira Gains in Official, Parallel Markets
- The naira strengthened by N5.34 against the US dollar in the Nigerian Autonomous Foreign Exchange Market, closing at N1,347.53/$1
- The local currency also gained N2 at the parallel market to close at N1,378/$1, while GTBank's selling rate improved to N1,365/$1
- The naira appreciated against the British pound and euro as interbank foreign exchange turnover declined to $244.61 million
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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 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: Getty Images
At GTBank's foreign exchange counter, the local currency gained N5 against the dollar, with the bank's selling rate improving to N1,365/$1 from N1,370/$1 on Tuesday.
Data from the Nigerian Foreign Exchange Market (NFEM) showed that the naira appreciated by N5.34, or 0.39%, to close at N1,347.53/$1, compared with N1,352.87/$1 recorded in the previous session.
The local currency also strengthened against other major currencies in the official market.
It gained N12.48 against the British pound, closing at N1,790.86/£1 from N1,803.34/£1. Against the euro, the naira appreciated by N8.25 to settle at N1,500.34/€1, compared with N1,508.59/€1 previously.
FX turnover declines
Despite the naira's gains, activity in the interbank foreign exchange market weakened during the session.
Data from the Central Bank of Nigeria (CBN) showed that interbank FX turnover fell to $244.61 million from $543.74 million in the preceding session.
Source: Getty Images
.The number of transactions also declined to 151 deals from 197 deals, indicating lower trading activity in the market.
The naira's recent performance comes amid stronger formal remittance inflows and an increase in Nigeria's external reserves, which provide additional support for the country's foreign exchange position.
Recent liquidity support from the CBN has also helped the currency recover some of its strength following significant dollar outflows from the market.
However, the naira's continued performance will depend on the availability of foreign exchange, dollar demand, capital flows and the sustainability of inflows into the Nigerian economy.
Businesses positive about naira
Earlier, Legit.ng reported that the naira has held relatively firm against the United States dollar, with Nigerian businesses signalling expectations of modest currency gains in the months ahead, according to the Central Bank of Nigeria's Business Expectations Survey for September 2026.
Businesses linked their positive mood mainly to rising demand, economic diversification, and better access to finance. Increased demand accounted for 29.3% of the factors driving optimism, while economic diversification contributed 18.9% and improved access to finance added 13.5%.
Despite the upbeat currency outlook, businesses pointed to a range of pressures that could affect their operations and investment decisions.
Source: Legit.ng
