Find out more as naira drops against major currencies as official markets

• The naira fell by 0.15% against the dollar at the official NAFEM market on Monday, October 19, closing at N1,333.76.
• Interbank foreign exchange turnover dropped sharply by 84.1% to $40.975 million, with the number of deals falling to 59.
• Deutsche Bank has added Nigeria to its frontier forex monitor, describing the naira as undervalued with room to gain against the dollar.

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The naira lost ground against the US dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday, October 19, closing at N1,333.76 per dollar compared with N1,331.76 in the previous session, a drop of N2 or 0.15%.

The local currency also weakened against other major currencies. Against the pound sterling, it fell by N15.85 to N1,778.30, while against the euro it shed N6.77 to close at N1,497.41.

Naira holds steady at parallel market

At the parallel market, also known as the black market, the naira held firm at N1,358 per dollar, unchanged from the previous session.

It also remained steady at N1,340 per dollar at the GTBank foreign exchange desk.

Trading activity at the interbank level fell sharply, with turnover declining by 84.1% to $40.975 million from $258.426 million recorded in the preceding session, according to Central Bank of Nigeria (CBN) data.

The number of deals dropped to 59 from 135, pointing to a significant slowdown in market activity.

Analysts say the short-term direction of foreign exchange inflows will depend on sustained foreign portfolio investment and a recovery in domestic sources of dollar supply.

Deutsche Bank sees room for naira gains

Despite Monday's dip, Deutsche Bank said the naira has room to appreciate further.

The international lender added Nigeria to its frontier foreign exchange monitor, describing the naira as undervalued and offering attractive carry, meaning investors can earn relatively strong returns simply by holding the currency given Nigeria's high interest rate environment.

In a note issued on Monday, October 19, the bank's strategists and economists pointed to favourable inflation-adjusted interest rates as a key factor supporting the naira's appeal to investors.

They also noted that the naira had risen by nearly 8% against the dollar so far in 2026, placing it among the top 10 best-performing currencies out of 144 tracked by Bloomberg.

The bank said the outlook for further gains will depend on the sustainability of foreign exchange inflows, foreign investor participation, and domestic dollar supply.

Official exchange rates for major currencies

The following selling rates were reported for selected currencies at the official market on Monday:

• US dollar: N1,333.76
• Pound sterling: N1,778.30
• Euro: N1,497.41
• Swiss franc: N1,617.66
• SDR: N1,807.11
• WAUA: N1,806.48
• UAE dirham: N363.13
• South African rand: N81.17
• Riyal: N355.42
• Yuan/Renminbi: N199.64
• Danish krone: N200.30
• CFA: N2.28
• Yen: N8.42

SEC plans changes to online forex trading

Legit.ng previously reported that the Securities and Exchange Commission (SEC) was planning stricter regulations for online forex and contracts for differences (CFDs) providers serving retail investors.

The proposed rules would set minimum paid-up capital requirements based on the type of business operated by each company.

They would also require brokers to keep customers' funds separate from their own.

Source: Legit.ng