SAT NOV 07 2026-theGBJournal| The naira weakened marginally against the US dollar, depreciating 0.1% week-on-week to close at ₦1,349.00/$, despite a $50.00 million intervention by the Central Bank of Nigeria (CBN).
The marginal decline underscores persistent pressure in the foreign exchange market, even as the CBN continues to support liquidity and exchange-rate stability through targeted dollar sales.
Meanwhile, Nigeria’s gross external reserves declined by $106.87 million to $55.13 billion as of November 5, 2026, indicating a modest drawdown in the country’s external buffers.
In the forward market, the naira recorded broad-based depreciation across all tenors, suggesting that market participants continue to price in near-term currency pressures.
The one-month forward rate weakened by 0.2% to ₦1,370.19/$, while the three-month contract depreciated by 0.2% to ₦1,405.78/$. Similarly, the six-month forward rate declined by 0.2% to ₦1,455.88/$, while the one-year contract recorded a steeper 0.6% depreciation to ₦1,557.65/$.
On the CBN’s official reference rates, the pound sterling traded at ₦1,816.35/£, while the euro stood at ₦1,513.40/€, as of November 5, 2026. These represent the CBN’s central reference rates, rather than parallel-market quotations.
Outlook: We expect the naira to remain broadly stable around prevailing levels in the near term, supported by Nigeria’s relatively strong external reserves position and sustained current account surplus. However, downside risks persist.
A moderation in domestic yields could diminish the relative attractiveness of naira-denominated assets, potentially weakening foreign portfolio inflows. Additionally, tighter global financial conditions and renewed dollar strength could constrain capital flows into emerging and frontier markets, increasing pressure on the domestic currency.
Overall, the sustainability of naira stability will depend on the CBN’s ability to maintain adequate FX liquidity, preserve investor confidence and sustain external buffers amid evolving domestic and global financial conditions.
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