Naira to Dollar exchange rate today, Monday, October 5, 2026
The Nigerian naira opened the week on a relatively stable footing, with the US dollar trading at about ₦1,327.08 on the official Nigerian Foreign Exchange Market (NFEM), while the parallel market rate remained within the ₦1,370–₦1,390 range.
Official market maintains stability
Trading at the official NFEM window remained largely steady as the new week began, extending the naira’s recent period of relative stability against the dollar.
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The stability comes amid improved liquidity conditions and increased trading activity in the formal foreign exchange market.
Ongoing policy measures by the Central Bank of Nigeria (CBN) have also continued to influence market conditions and support greater price discovery.
Market participants said the increased availability of foreign exchange has helped limit sharp movements in the official exchange rate, with the naira remaining within a relatively narrow trading range.
Foreign reserves provide support
Another factor supporting the currency is the country’s improved foreign exchange buffer.
Nigeria’s foreign reserves have strengthened significantly in recent months, providing the authorities with greater capacity to manage foreign exchange pressures and support market stability.
Analysts said the stronger reserve position has helped improve confidence in the foreign exchange market, reducing concerns over sudden shortages of dollars and excessive volatility.
Parallel market records narrow gap
In the parallel market, the US dollar was quoted between ₦1,370 and ₦1,390, depending on the location and individual currency trader.
Demand for physical dollars remained steady, particularly among individuals and businesses that require cash foreign exchange for routine transactions.
Despite the higher parallel-market rate, the difference between the street rate and the official NFEM rate remains relatively contained compared with periods when a wider disparity existed between the two markets.
Analysts point to improved liquidity
Financial market analysts have linked the relatively narrow gap to improvements in foreign exchange liquidity and increased transparency in the official market.
According to the market view, improved access to dollars through formal channels is reducing the incentive for some traders and businesses to hold foreign currency purely as a hedge against scarcity or future price increases.
The development could further encourage legitimate foreign exchange transactions to move through banks and other formal channels rather than the informal market.
For now, market participants are watching liquidity conditions, foreign reserve movements and CBN policy decisions for indications of whether the naira can sustain its current level of stability in the coming trading sessions.