Introduction

The Nigerian naira recorded notable strength against the US dollar in late September 2026, driven by a sharp increase in interbank foreign exchange activity. Market data shows a significant rebound in turnover, reflecting improved liquidity and shifting monetary policy dynamics.

What Happened

On September 30, 2026, interbank FX turnover jumped to $179.58 million, a 123% increase from the previous session's $80.58 million. The naira closed at N1,329.50/$, gaining ground from N1,331/$ on September 29. Trading activity rose to 126 deals from 94 the day before, with the currency fluctuating between N1,328/$ and N1,331.75/$ during the session.

Why This Matters

The surge in interbank activity coincides with Nigeria's external reserves crossing $55 billion, the highest level in over 18 years. The Central Bank of Nigeria's recent rate cut, reducing the Monetary Policy Rate by 350 basis points to 23%, has helped ease pressure on the foreign exchange market. Analysts view the combination of stronger reserves and policy easing as a positive signal for market stability.

Key Takeaways

  • Interbank FX turnover increased 123% to $179.58 million on September 30, 2026.
  • The naira strengthened to N1,329.50/$, up from N1,331/$ on September 29.
  • Trading volume rose to 126 deals from 94 the previous day.
  • External reserves surpassed $55 billion, reaching their highest point since 2008.
  • The CBN reduced its benchmark interest rate by 350 basis points to 23%.

Conclusion

The latest FX data underscores the impact of monetary policy shifts and reserve growth on Nigeria's foreign exchange market. With reserves at multi-year highs and the CBN signaling continued policy support, the naira may maintain upward momentum in coming weeks, though traders will watch for further reserve changes and policy decisions.