The naira came under renewed pressure in the foreign exchange market on Thursday, weakening to N1,355/$ amid sustained volatility and a slight dip in Nigeria’s external reserves.
Data from the Central Bank of Nigeria (CBN) showed the currency depreciated from N1,348.1/$ recorded on Wednesday, extending a gradual downward trend observed in recent trading sessions.
Intraday data indicated that the naira traded between N1,350/$ and N1,355.8/$, settling at an average rate of N1,354.19/$. A total of 46 interbank deals were recorded during the session, reflecting moderate market activity.
A week earlier, the local currency had closed at N1,341.01/$, underscoring consistent depreciation pressures driven by demand-supply imbalances in the FX market.
Nigeria’s external reserves also edged lower, declining to $48.48 billion from $48.54 billion recorded at the start of the week on April 20, 2026. The marginal drop signals a reduced buffer for sustained interventions in the currency market.
Analysts attribute the pressure on the naira to persistent demand for foreign exchange amid limited supply, compounded by global market developments that have strengthened the U.S. dollar.
The dollar gained on safe-haven demand, supported by rising geopolitical tensions, particularly stalled negotiations between the United States and Iran. Concerns over potential disruptions in the Strait of Hormuz also lifted crude oil prices, further boosting the dollar.
The dollar index hovered around 98.82, remaining on track for a weekly gain of 0.58 per cent, while other major currencies—including the euro, British pound, and Japanese yen—also weakened.
Emerging market currencies such as the Philippine peso, Malaysian ringgit, and Indian rupee recorded similar losses, reflecting broader global pressures.
Despite the current outlook, higher oil prices could support Nigeria’s FX inflows in the near term, although global uncertainties may continue to offset these gains.
Earlier in the week, the naira had weakened to N1,349/$ on Monday, down from N1,342.5/$ recorded at the close of trading on Friday.
Meanwhile, CBN Governor Olayemi Cardoso has downplayed concerns over the recent decline in external reserves. He noted that minor fluctuations in reserve levels are often overinterpreted and should not trigger undue alarm.
The apex bank has projected that reserves could rise to $51 billion by the end of 2026, as part of a broader macroeconomic stabilisation strategy aimed at strengthening Nigeria’s external buffers.
