Naira Weakens to ₦1,348/$ as Foreign Exchange Trading Activity Slows

Nigeria's naira weakened slightly against the United States dollar at the official foreign exchange market, closing at ₦1,348 per dollar on Wednesday, November 4, 2026. This represents a small decline from the ₦1,347.75 recorded on the previous trading day.
According to a report by Nairametrics published on November 5, the naira lost ₦0.25 against the dollar, representing a depreciation of approximately 0.02%. Although the movement was relatively small, it marked the second consecutive trading session in which the local currency weakened.
Foreign Exchange Trading Activity Declines
Trading activity in Nigeria's foreign exchange market also slowed during the session. Available interbank data showed that 97 transactions worth approximately $100.93 million were recorded on November 4.
This was lower than the 117 transactions valued at $118.96 million recorded on the previous trading day.
The reduction in trading volume suggests that activity in the foreign exchange market remained subdued. Lower transaction volumes can make it important for market participants to pay closer attention to the availability of foreign currency and changes in demand.
What Forex Traders Are Watching
Forex traders and investors will likely continue monitoring several factors that could influence the naira's performance.
One important factor is the supply of foreign currency in the official market. The availability of dollars from exporters, foreign investors and other sources can influence exchange-rate movements.
Traders will also pay attention to Nigeria's foreign exchange reserves, monetary policy decisions by the Central Bank of Nigeria and developments in the global currency market.
The movement of the US dollar internationally and changes in oil prices may also influence foreign exchange supply and demand in Nigeria.
These factors will help market participants assess whether the naira could experience further pressure or regain some stability in the coming trading sessions.
What It Could Mean for Prices in Nigeria
Changes in the exchange rate can have consequences for businesses and ordinary Nigerians.
When the naira weakens against the dollar, importing goods and raw materials can become more expensive for businesses that depend on foreign suppliers.
This may increase operating costs for companies importing machinery, electronics, medicines, food products and other essential materials.
If businesses pass these additional costs to consumers, the prices of some goods and services could increase.
However, exchange-rate movements do not always lead to immediate price changes. The impact depends on factors such as existing stock, production costs, transportation expenses and the speed at which businesses adjust their prices.
For consumers, continued pressure on the naira could make it more difficult to manage household expenses, especially if higher import costs eventually affect everyday products.
Outlook
The naira's slight depreciation and declining foreign exchange transaction volume highlight the importance of monitoring activity in Nigeria's currency market.
Although the latest movement was relatively small, traders, businesses and consumers will be watching developments in foreign exchange supply, market liquidity and Central Bank policies.
The coming trading sessions will provide a clearer picture of whether the naira can stabilise or continue facing pressure against the US dollar.
Source: Nairametrics – November 5, 2026.