Naira falls to N1,361.84 per dollar as external reserves total $55.16bn

The official exchange rate for Nigeria’s naira slipped to N1,361.84 per US dollar on Friday, a drop of N27.12 from the N1,334.72 level recorded on Wednesday. The Central Bank of Nigeria (CBN) released the data on Thursday and Friday, showing a 2.03% depreciation over the two‑day period. In the parallel market, the naira was reported at about N1,375 per dollar, roughly N5 weaker than the official rate, according to several bureau de change operators who spoke to the Daily Post.

The currency decline occurred while the CBN’s latest figures indicated that Nigeria’s external reserves stood at $55.16 billion as of 22 October 2026. The juxtaposition of a falling naira and sizable foreign‑exchange reserves has drawn attention to the dynamics of the country’s foreign‑exchange market.

Background

Nigeria’s foreign‑exchange market operates with an official rate set by the CBN and a parallel market where many businesses and individuals transact. The recent data shows the naira losing N27.12 against the dollar both over the two‑day window and on a week‑on‑week basis at the official market. The parallel market, which often reflects supply‑demand pressures more directly, recorded a rate of N1,375 per dollar, indicating a broader weakening across the currency’s trading venues.

The CBN’s external reserves, reported at $55.16 billion, represent the country’s holdings of foreign currency, gold, and other assets that can be used to stabilise the naira and meet import obligations. Historically, Nigeria has relied on its reserves to intervene in the market, but the recent depreciation suggests that the reserves have not prevented short‑term pressure on the currency.

Why it matters

The naira’s depreciation affects importers, businesses, and consumers who rely on foreign goods and services priced in dollars. A weaker naira raises the local‑currency cost of imports, potentially contributing to higher inflation and reduced purchasing power. The parallel market rate, being higher than the official rate, also signals a divergence that can influence market expectations and the cost of obtaining foreign currency for legitimate trade.

Stakeholders, including bureau de change operators, have confirmed the parallel market level, underscoring the practical impact on everyday transactions. The CBN’s reserve level, while substantial, may be scrutinised by policymakers and investors as they assess the central bank’s capacity to support the naira amid ongoing volatility.

What happens next

The Daily Post report does not specify any immediate policy actions by the CBN following the latest depreciation. However, the central bank’s ongoing monitoring of external reserves and exchange‑rate movements suggests that further interventions or adjustments to monetary policy could be considered, depending on future market developments.