Naira Holds Near N1,333 as Foreign Exchange Turnover Swings

The change amounted to 50 kobo per dollar, a modest weakening over the last reported session. The exchange rate stayed within a narrow range during the first two weeks of October, but reported trading turnover varied across sessions, showing why the currency’s price is only one measure of market conditions.

For businesses that need foreign exchange to pay for imports, equipment, shipping or overseas services, access to dollars can matter as much as the headline exchange rate. The amount traded, the stability of supply and the difference between official and other market rates can all affect planning.

Exchange rate changes remained modest

The CBN data cited by Nairametrics showed the naira closing at N1,332.90 on 5 October, N1,331.50 on 6 October, N1,332.75 on 7 October, N1,333.55 on 8 October, N1,332.49 on 9 October and N1,332.99 on 12 October.

Across that period, the close moved within a band of just over N2 per dollar. A narrow range may reduce daily pricing uncertainty, but it does not establish that all companies can access the foreign currency they need or that there is no unmet demand.

The rate is a reference point for the official market. Businesses and individuals should pay attention to the rate available to them through licensed channels and to transaction fees, settlement timing and documentation requirements.

Turnover tells a different story

The report said NFEM turnover was approximately N619.22M on 5 October, N1.01B on 6 October, N311.13M on 7 October, N1.21B on 8 October and N488.65M on 9 October. These daily totals are reported transaction values, not the amount of dollars held by the central bank.

For 12 October, the report said the CBN had not provided the NFEM turnover figure at the time of filing, although interbank turnover was listed separately at approximately N36.24M. A missing or zero entry in a data table should not automatically be read as proof that no foreign exchange trades took place across the entire market.

The two measures may cover different reporting categories or reflect a missing data point. Readers should compare like with like and check the CBN’s latest update before drawing conclusions about liquidity.

Reserves provide further context

Nairametrics also reported that Nigeria’s foreign exchange reserves increased by about US$115M (approximately KSh 14.94B) over six days to US$55.07B (about KSh 7.14T) as of 8 October. It cited a separate report saying net foreign reserves had risen to US$46B (about KSh 5.97T).

Gross and net reserves are different measures, and changes in reserves do not directly reveal how much foreign currency was supplied to the market on a particular day. They do, however, provide additional context for assessing the central bank’s external buffers alongside the exchange rate and turnover.

What businesses should watch

The key indicators to follow are the daily official closing rate, reported turnover, reserves and any changes in the rules governing access to foreign exchange. An exchange rate that changes little can still coexist with uneven access to currency, while higher turnover may reflect more transactions without necessarily indicating a lasting improvement in liquidity.

For now, the naira’s official close remains near N1,333 to the dollar, while the daily turnover data calls for careful interpretation. The CBN’s official exchange-rate data is the primary reference for daily readings.

More reporting on currencies and African markets is available in Mwenendo’s business coverage.