The naira strengthened against the United States dollar in the Nigerian Foreign Exchange Market (NAFEM) on Thursday, May 21, 2026, closing at N1,372.31 per dollar. This represents a N1.03 (0.07%) gain from the previous day's rate of N1,373.34.
Naira Performance Against Major Currencies
Data from the Central Bank of Nigeria (CBN) also showed the naira gaining ground against the euro. It closed at N1,590.78 to one euro, up N1.75 from N1,592.53 recorded on Wednesday. However, the naira depreciated slightly against the British pound, falling N0.26 to close at N1,840.26 per pound, compared with N1,840.00 previously.
Parallel Market and GTBank Rates
In the parallel market, also known as the black market, the naira remained relatively stable against the US dollar, trading at N1,390 per dollar. At the GTBank FX counter, the rate was N1,379 per dollar, showing little change from previous sessions.
Interbank FX Liquidity Turnover
Interbank foreign exchange liquidity turnover for the session amounted to $116.043 million, with 105 deals recorded. This was higher than the $68.020 million turnover from the previous session, indicating increased activity in the official market.
CBN Maintains Reform-Driven FX Policy
The CBN has reiterated its commitment to ongoing reforms aimed at achieving a stable exchange rate and controlling inflation. Speaking after the Monetary Policy Committee (MPC) meeting, CBN Governor Yemi Cardoso stated that the exchange rate remains the key anchor of the CBN's policy stance. He noted that recent reforms to the market structure have reduced the need for large central bank intervention.
Cardoso revealed that daily foreign exchange turnover in the market has increased significantly to about $550 million, up from approximately $100 million at the start of the current administration. Intra-day surges have even reached about $1 billion. He projected that turnover could reach $1 billion daily as reforms continue to boost market confidence.
Gross External Reserves
The CBN Governor also reported that gross external reserves stood at $49.49 billion as of May 15, 2026, compared to $48.35 billion at the end of March 2026. This level is sufficient to cover 9.04 months of imports for goods and services. Cardoso emphasized that this strong buffer continues to reinforce investor confidence in the Nigerian economy and supports exchange rate stability.
Snapshot of Naira Rates in the Official Market
Here are the official exchange rates for other currencies as of May 21, 2026:
- CFA: N2.43
- Yuan/Renminbi: N201.67
- Danish Krone: N212.82
- Euro: N1,590.78
- Yen: N8.62
- Riyal: N365.68
- South African Rand: N82.95
- SDR: N1,884.73
- Swiss Franc: N1,738.20
- Pound Sterling: N1,840.26
- US Dollar: N1,372.31
- WAUA: N1,877.34
- UAE Dirham: N373.59
CBN on PTA and BTA
In a related development, the CBN has partially relaxed its 2024 cashless rule on Personal Travel Allowance (PTA) and Business Travel Allowance (BTA). Under the revised Foreign Exchange (FX) Manual, effective June 1, 2026, travelers will receive 25% of their PTA and BTA in cash dollars, while the remaining 75% will be processed electronically through debit and credit cards. This adjustment aims to provide travelers with renewed access to cash dollars while maintaining electronic payment channels.
