On Wednesday, October 28, 2026, the Naira showed significant improvement against the United States Dollar in both official and parallel foreign exchange markets. In the parallel market, the Naira gained N2 to close at N1,378 per dollar, compared with N1,380 recorded on Tuesday. This development indicates a positive trend for the Nigerian currency. The improvement was also observed in various banks, where the Naira appreciated by N5 to N1,365 per dollar from N1,370 the previous day.
The Nigerian Autonomous Foreign Exchange Market (NAFEM) also witnessed a notable gain for the Naira. It appreciated by N5.34, or 0.39 per cent, to close at N1,347.53 per dollar, compared with N1,352.87 on Tuesday. This gain suggests increased stability in the foreign exchange market. Additionally, the local currency strengthened against other major currencies, including the British Pound and the Euro.
Against the British Pound, the Naira gained N12.38 to close at N1,790.86, compared with N1,803.34 recorded the previous day. Similarly, against the Euro, the Naira appreciated by N8.25 to close at N1,500.34, from N1,508.59. These improvements across various currency pairs indicate a robust recovery for the Naira.
Despite the positive trend, data from the Central Bank of Nigeria (CBN) revealed a decline in foreign exchange transactions between banks. The transactions fell to $244.61 million from $543.74 million. The number of transactions also decreased from 197 to 151. This decline may be attributed to various market and economic factors.
The US central bank chairman, Kevin Warsh, provided insights into the current economic situation. He stated that inflation was easing but price pressures remained high. This statement has implications for global financial markets, including Nigeria. Market analysts expect another rate increase in December following a hike in September.
The global cryptocurrency market also experienced mixed trends. Dogecoin fell by 1.1 per cent to $0.0787, while Bitcoin dropped by 0.8 per cent to $80,201.22. However, some cryptocurrencies showed gains, with Binance Coin rising by 1.5 per cent to $765.55, and TRON increasing by 0.1 per cent to $0.3309. Tether and USD Coin remained stable at $1 each.
The recent performance of the Naira and global financial trends highlight the interconnectedness of economies. As market analysts continue to monitor the situation, stakeholders anticipate further developments that could influence exchange rates and economic stability. The Naira's current trajectory suggests potential for sustained recovery, contingent on various economic factors.
Key points
- The Naira gained N5.34 against the dollar in the official market.
- The Naira strengthened against the British Pound and Euro.
- US central bank chairman Kevin Warsh noted easing inflation but high price pressures.
