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The naira appreciated against the dollar in the official foreign exchange (FX) market on Tuesday, recovering N14.74 after five consecutive.

The naira appreciated against the dollar in the official foreign exchange (FX) market on Tuesday, recovering N14.74 after five consecutive days of losses, as the Central Bank of Nigeria’s (CBN) interventions and strengthening external buffers supported the local currency. 

Data published by the CBN showed that the naira appreciated by N14.74, or 1.09 percent, as the dollar was quoted at N1,352.87 on Tuesday, compared with N1,367.61 on Monday at the Nigerian Foreign Exchange Market (NFEM).

In the parallel market, also known as the black market, the local currency steadied at N1,382 per dollar. Consequently, the gap between the official and parallel market rates widened to 2.2 percent, or N30, from 1.09 percent, or N15, on Monday.

Activity moderated in the interbank segment of the FX market, with total turnover declining by 11.48 percent to $543.74 million on Tuesday from $614.25 million on Monday. The number of deals also fell by 1.99 percent, from 201 on Monday to 197 on Tuesday. 

Although NFEM data on turnover and the number of deals for Tuesday were unavailable as of the time of reporting, total turnover at the NFEM window had declined by 61.29 percent to $1.25 billion on Monday from $3.24 billion on Friday. The number of deals also dropped by 29.56 percent, from 609 to 429 over the same period. 

Meanwhile, Nigeria’s external reserves, which provide the CBN with the capacity to support the naira and meet the country’s external obligations, have maintained an upward trajectory, reaching an 18-year high of $55.26 billion as of October 26, 2026.

Data published on the CBN website showed that the reserves increased by 28.30 percent from $43.07 billion recorded on October 27, 2025, strengthening the country’s external buffer amid pressure on the foreign exchange market.

A CBN report showed that total foreign exchange inflows fell by 4.24 percent to $30.03 billion in the second quarter of this year from $31.36 billion in the first quarter, while outflows declined by 19.17 percent to $8.94 billion from $11.06 billion.

Foreign exchange inflows through the CBN fell by 20.47 percent to $8.12 billion from $10.21 billion, while inflows through autonomous sources rose by 3.59 percent to $21.91 billion from $21.15 billion.

Consequently, autonomous sources recorded a net inflow of $17.74 billion, compared with $17.53 billion in the first quarter. The CBN’s net inflow also increased to $3.35 billion from $2.77 billion.

Meanwhile, average turnover at the Nigerian Foreign Exchange Market declined by 7.56 percent to $530.42 million from $573.81 million in the preceding quarter.

The average exchange rate of the naira strengthened to N1,365.95 per dollar in the second quarter from N1,384.48 in the first quarter, representing a 1.36 percent appreciation during the review period.

The performance of other emerging-market currencies was mixed during the quarter. The Chinese renminbi and Russian ruble appreciated by 1.74 percent and 5.33 percent, respectively, supported by export earnings and other market factors.

In contrast, the South African rand depreciated by 0.79 percent amid global risk aversion linked to uncertainty in the Middle East and domestic concerns over anti-immigration demonstrations.