The Nigerian naira weakened by N1.07 against the US dollar at the Nigerian Foreign Exchange Market (NFEM) on Wednesday, October 21, 2026, closing at N1,334.72/$1, according to data from the Central Bank of Nigeria (CBN). This decline follows a previous close of N1,333.65/$1 on Tuesday.
The local currency also depreciated against the British pound sterling and the euro. The naira lost N3.04 against the pound, closing at N1,787.73/£1, compared with N1,784.69/£1 in the prior session. Against the euro, the naira weakened by N2 to N1,499.29/€1, down from Tuesday's rate of N1,497.29/€1.
Parallel Market Stability and FX Turnover Surge
Despite the official market losses, the naira remained stable in the parallel market, trading at N1,358/$1. It also traded flat at N1,340/$1 at the GTBank foreign exchange desk, indicating a divergence between official and unofficial rates.
Data from the CBN showed that interbank foreign exchange turnover increased by 110% to $127.63 million, up from $60.72 million. The number of foreign exchange deals also rose to 95 from 70, signaling increased activity in the official market.
Support Factors and Analyst Outlook
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.
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's Positive Forecast
Earlier, Legit.ng reported that Deutsche Bank has identified the naira as a currency worth watching for foreign investors, forecasting further appreciation against the US 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.
