The naira weakened to N1,350.45 per dollar at the Nigerian Foreign Exchange Market (NFEM) on Thursday, extending its losses in the first week of November.
Data from the Central Bank of Nigeria (CBN) showed that the currency depreciated from N1,348/$ recorded on Wednesday, after closing at N1,347.75/$ on November 3 and N1,346.01/$ on November 2.
The latest decline means the naira has lost N4.44 against the dollar since the November 2 close.
During Thursday’s trading session, the currency moved between N1,348 and N1,350.50 per dollar, while the weighted average rate stood at N1,348.7416.
Trading activity also weakened sharply. The market recorded 88 interbank transactions with turnover of about $82.16 million, compared with 287 deals and $100.93 million in interbank turnover the previous day.
The weaker naira came despite an increase in Nigeria’s external reserves. Gross reserves rose by $295.35 million in October, while net foreign exchange reserves climbed to a record $46 billion.
The latest reserve figures provide some external buffer for the economy, but have yet to prevent renewed pressure on the naira in the opening days of November.
