How the naira lost N27 in two days despite huge reserves

• The naira lost N27.12 against the dollar in two trading sessions, falling to N1,361.84 at the official market
• At the parallel market, the dollar rose to N1,375, leaving a N13.16 gap between the two rates
• Despite reserves reaching $55.16 billion, a weaker naira could raise costs for importers, businesses and households

Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

The Nigerian naira has suffered a fresh setback against the United States dollar, losing N27.12 within two trading days despite the country's external reserves rising to $55.16 billion.

Data from the Central Bank of Nigeria (CBN) showed that the local currency depreciated to N1,361.84 per dollar on Friday, October 23, 2026, compared with N1,334.72 recorded on Wednesday, October 21.

The development represents a 2.03% depreciation, raising fresh concerns about the naira's stability and the sustainability of recent gains in Nigeria's foreign exchange market.

The decline also highlights the challenges facing the currency despite the country's substantial foreign exchange reserves.

CBN releases new dollar exchange rate

According to figures published by the apex bank, the naira closed Friday's trading at N1,361.84 per dollar at the official Nigerian Foreign Exchange Market.

This represents a loss of N27.12 against the American currency within two trading sessions.

On a week-on-week basis, the naira also weakened by N27.12, reflecting renewed pressure on the local currency.

The latest exchange rate means businesses and individuals purchasing dollars through the official market now face higher naira costs than they did on Wednesday.

The depreciation could also increase the cost of imported goods and services if the weaker exchange rate persists.

Naira weakens at parallel market

The naira's troubles were not limited to the official foreign exchange window.

At the parallel market, commonly operated by Bureau de Change dealers, the currency also depreciated against the dollar.

Several currency traders who spoke to DAILY POST confirmed that the naira weakened by N5 to exchange at N1,375 per dollar.

The latest movement places the difference between official and parallel market rates at N13.16 per dollar.

Although the parallel market rate remains higher, the relatively narrow gap suggests that both markets are experiencing pressure.

Nigeria's external reserves hit $55.16 billion

The depreciation comes despite Nigeria's external reserves reaching $55.16 billion as of October 22, 2026, according to CBN figures.

Foreign exchange reserves provide an important financial buffer, helping countries meet external obligations and manage potential currency market disruptions.

However, rising reserves do not automatically translate into an appreciating currency.

Exchange rate movements also depend on dollar demand, foreign exchange supply, investor confidence and broader economic conditions.

What the new dollar rate means for Nigerians

The latest depreciation could put additional pressure on importers, manufacturers and businesses that depend on foreign currency to purchase raw materials, equipment and other essential products.

Nigerians paying overseas tuition, international travel expenses and foreign-denominated bills may also face higher costs.

For households already managing elevated living expenses, sustained currency weakness could eventually translate into higher prices for imported products.

Attention will now turn to the naira's performance in the coming trading sessions and whether improved dollar supply can help stabilise the exchange rate.

Naira slips against dollar

Legit.ng earlier reported that 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.

Source: Legit.ng