The naira traded around N1,333 per dollar at the Nigerian Foreign Exchange Market (NFEM) on Monday, October 12, as foreign exchange turnover recorded sharp fluctuations across recent trading sessions.
Data from the Central Bank of Nigeria (CBN) showed that the currency closed at N1,332.99 per dollar, compared with N1,332.49 on Friday, October 9, representing a marginal depreciation of 50 kobo.
The latest performance reflects the naira’s relatively narrow trading range in the first two weeks of October, with the exchange rate hovering between N1,330 and N1,334 per dollar.
The currency closed at N1,332.90 on October 5 before appreciating to N1,331.50 on October 6. It subsequently weakened to N1,332.75 on October 7 and N1,333.55 on October 8, before recovering to N1,332.49 on October 9.
The marginal depreciation recorded on October 12 indicates that the naira remained broadly stable around the N1,333 level, despite fluctuations in market activity.
FX turnover records uneven activity
Foreign exchange turnover varied considerably across the reported trading sessions, indicating changes in transaction volumes within the official market.
According to the figures reported by Nairametrics, turnover reached approximately N1.21 billion on October 8, compared with N1.01 billion on October 6.
Activity subsequently declined to about N311.13 million on October 7 and N488.65 million on October 9, while the Central Bank’s reported figures for October 12 showed interbank turnover of approximately N36.24 million.
The CBN had yet to provide the corresponding NFEM turnover figure for October 12 at the time of the report. The available data therefore do not establish that foreign exchange transactions across the broader market had ceased.
The fluctuations in daily turnover come amid continuing efforts to improve liquidity and stability in Nigeria’s foreign exchange market.
External reserves rise above $55 billion
Meanwhile, Nigeria’s external reserves continued to strengthen, providing additional context for the relative stability of the naira.
The country’s foreign exchange reserves rose by approximately $115 million in six days to $55.07 billion as of October 8, according to figures cited in the report.
Net foreign exchange reserves also climbed to $46 billion, while Central Bank Governor Olayemi Cardoso has linked improved currency-market stability to stronger investor confidence.
The reported increase in reserves represents a stronger external buffer, although movements in reserves alone do not determine the naira’s daily exchange rate.
Market performance will continue to depend on the availability of foreign currency, demand from importers and other market participants, capital inflows and broader economic conditions.
For businesses reliant on imported raw materials, machinery and other inputs, sustained exchange-rate stability could help improve cost planning. However, the naira’s movements around N1,333 per dollar and the uneven turnover figures show that developments in the foreign exchange market remain important to monitor.
