By Business Correspondent

ABUJA, Tuesday, October 13, 2026 — The naira weakened marginally against the United States dollar at the Nigerian Foreign Exchange Market (NFEM) on Monday, extending its recent fluctuations around the ₦1,330-per-dollar level amid a sharp decline in foreign exchange turnover.
Data published by the Central Bank of Nigeria (CBN) showed that the naira closed at approximately ₦1,332.09 to the dollar on Monday, October 12, compared with ₦1,331.19 recorded at the previous Friday’s close.
The movement represented a depreciation of about 90 kobo, or 0.07 per cent, indicating a relatively modest adjustment in the official exchange rate.
The latest performance suggests that the currency has continued to trade within a narrow range in early October, although changes in market liquidity remain an important factor for investors and businesses monitoring foreign exchange conditions.
FX Turnover Declines Sharply
One of the notable developments was the substantial reduction in foreign exchange turnover in the official market.
According to market reports citing CBN data, interbank foreign exchange turnover fell to approximately $36.24 million on Monday from $162.74 million recorded in the preceding reported session.
The decline points to a significant reduction in reported trading activity.
However, lower turnover does not necessarily indicate a shortage of foreign exchange. It may also reflect changes in the timing of transactions, the availability of counterparties or the volume of deals executed during the session.
Market participants will therefore be watching subsequent trading sessions for evidence of whether the decline represents a temporary fluctuation or a more persistent change in market liquidity.
Naira Records Mixed Performance Against Other Currencies
The naira recorded mixed movements against other major currencies in the official market.
It weakened against the British pound, with the exchange rate moving to approximately ₦1,762.63 per pound from ₦1,759.16 in the preceding session.
Against the euro, however, the domestic currency appreciated to about ₦1,489.15 from ₦1,490.79.
The mixed performance underscores the importance of monitoring the naira against a basket of major currencies rather than assessing its strength solely through the dollar exchange rate.
Movements in the pound and euro also reflect changes in their relative values against the dollar in international currency markets.
Parallel Market and Bank Rates
At the parallel market, the naira reportedly traded around ₦1,360 per dollar, while the exchange rate quoted at the GTBank foreign exchange desk improved to approximately ₦1,338 per dollar.
The difference between the reported parallel-market and official-market rates highlights the importance of monitoring pricing across different segments of the foreign exchange market.
However, the rates available to individual customers may vary according to transaction type, eligibility requirements, market conditions and applicable bank charges.
The official market rate should therefore be distinguished from the rates available to individuals and businesses seeking to purchase foreign currency.
Outlook: Liquidity and Dollar Supply Remain in Focus
Attention is expected to remain on foreign exchange supply, market liquidity, capital flows and the Central Bank of Nigeria’s monetary policy framework.
The ability of exporters, foreign investors and other market participants to supply dollars through authorised channels remains important to the market’s overall functioning.
Developments in foreign exchange reserves, crude oil receipts, import demand and international investor sentiment may also influence the naira’s performance.
For businesses, sustained exchange-rate stability would improve planning and reduce uncertainty around the cost of imported raw materials, machinery and other foreign-currency obligations.
Importers and manufacturers, in particular, will continue to monitor both the exchange rate and the ease of obtaining foreign currency for eligible transactions.
Although the latest depreciation was modest, the sharp decline in reported turnover highlights the need to monitor both exchange-rate movements and underlying trading activity.
Market participants will be looking for fresh data from the CBN to determine whether the naira can maintain its recent trading range as the week progresses.