The naira appreciated by 32 kobo against the US dollar at the official market on Thursday, October 22, 2026, while losing N2 on the black market to close at N1,360/$1. The local currency also weakened by N3 at GTBank's forex desk, settling at N1,343/$1.
Mixed Performance Across Markets
At the Nigerian Foreign Exchange Market (NAFEM), the naira gained 32 kobo, or 0.02%, to N1,334.40 per dollar from N1,334.72/$1 recorded on Wednesday. This marginal appreciation contrasted with the parallel market, where the currency depreciated by N2 to N1,360/$1, compared with N1,358 in the previous session.
At GTBank's foreign exchange desk, the naira lost N3 against the greenback, falling to N1,343/$1 from N1,340/$1. The mixed performance highlights the persistent divergence between official and unofficial exchange rates in Nigeria.
Naira Falls Against Pound and Euro
The naira recorded losses against other major currencies at the official market. Against the British pound, the local currency depreciated by N10.55 to N1,798.28/£1 from N1,787.73/£1 on Wednesday. It also weakened against the euro, losing N7.12 to close at N1,506.41/€1, compared with N1,499.29/€1 in the previous session.
Despite the mixed performance across currency pairs, activity in the interbank foreign exchange market increased significantly during the session. Data from the Central Bank of Nigeria showed that interbank foreign exchange turnover surged by 148% to $316.545 million from $127.628 million a day earlier. The number of foreign exchange transactions also rose to 181 deals from 95 deals, indicating a substantial increase in trading activity.
Outlook for the Naira
The naira could face renewed pressure as importers seek foreign currency ahead of the holiday season, while investors take profits on securities. Market participants have also indicated that further intervention by the Central Bank of Nigeria may be needed in the coming week to ease pressure on the local currency.
The naira's performance will depend partly on foreign exchange supply, demand from importers and other market participants, and the extent of intervention by the monetary authorities. According to a Legit.ng report, Deutsche Bank has identified the naira as a currency attracting foreign investor interest, projecting further gains against the United States dollar as Nigeria's external position strengthens.
The German banking giant included Nigeria in its frontier foreign exchange monitor, citing the naira's undervaluation and relatively high real interest rates as factors that could draw additional foreign capital into the country. According to the bank, investors could also benefit from the interest rate gap between Nigeria and other markets through a strategy known as the carry trade.
