The Nigerian naira depreciated by N1.81 against the US dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday, September 28, closing at N1,331.32/$, according to market data. Interbank foreign exchange turnover plunged by 77.7% to $24.73 million, down from $111.06 million recorded on Friday, with the number of deals dropping from 108 to 37.
Naira Performance Across Major Currencies
The naira's decline at NAFEM represented a 0.14% depreciation from the previous trading session's closing rate of N1,329.51/$. The local currency also lost ground against the British Pound Sterling, closing at N1,766.01 per pound compared to N1,762.40 previously, a fall of N3.61.
However, the naira gained N2.72 against the Euro, closing at N1,512.79 from N1,515.51 in the prior session. In the parallel market, the naira held steady at N1,370 to the dollar, while it remained unchanged at N1,336 at the Guaranty Trust Bank foreign exchange desk.
FX Turnover Drops Sharply
Interbank foreign exchange turnover contracted sharply to $24.73 million on Monday, down from $111.06 million recorded on Friday, representing a 77.7% decline. The number of transactions also fell 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 closely monitoring expectations around American monetary policy and interest rate decisions.
Analysts Predict Naira Stability
Market analysts at GTFund Managers said the naira could hold its ground despite the stronger dollar. In a note, the analysts said 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.
CBN Exchange Rates and BDC Guidelines
The CBN's indicative selling rates against the naira on Monday were: US Dollar at N1,331.33, Pound Sterling at N1,766.01, Euro at N1,512.79, Swiss Franc at N1,600.35, Yuan/Renminbi at N198.39, South African Rand at N81.21, UAE Dirham at N362.47, Saudi Riyal at N354.61, Japanese Yen at N8.47, CFA at N2.31, Danish Krona at N202.34, and SDR at N1,810.38.
In a related development, the Central Bank of Nigeria 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.
