Naira weakens to N1,365/$, records sharpest daily decline in 18 months

The naira depreciated by N28 against the US dollar to close at N1,365/$ on October 22, 2026, marking its sharpest single-day decline since April 2025.

Data from the Central Bank of Nigeria (CBN) showed the exchange rate weakened from N1,337/$ recorded on October 21, representing a depreciation of about 2.1% in one trading session.

Checks by Nairametrics revealed that the latest decline was the largest in the closing exchange rate since April 9, 2025, when the naira weakened by N29 from N1,615/$ to N1,644/$.

The latest movement reversed the relatively narrow fluctuations recorded in the preceding sessions.

CBN data showed that the currency had closed at N1,334.99/$ on October 20 and N1,337/$ on October 21 before the latest depreciation.

The daily movement stands out against the more modest changes recorded earlier in October, when the naira traded largely within the N1,330–N1,340/$ range.

The depreciation comes amid significant demand for foreign exchange and continued movement in investment flows.

Nairametrics’ analysis of Financial Markets Dealers Association data showed that Nigeria’s foreign exchange demand reached a 15-year high of $18.34 billion in the second quarter of 2026, with demand for dollars rising particularly in services and financial payments.

These figures point to a market shaped by both foreign exchange demand and external liquidity. However, the latest daily depreciation alone does not establish the specific factors behind Thursday’s movement.

Nigeria’s foreign exchange reserves provide a buffer for meeting external obligations and supporting confidence in the foreign exchange market.

Portfolio investment inflows also increased during the period, adding another dimension to the country’s external flows.

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