The naira recorded a slight decline on Tuesday, settling at N1,383.5 per dollar from N1,383 the previous day, as pressure on Nigeria’s foreign exchange market persists amid a drop in external reserves.
Showing the currency moved inside a small range of N1,372 to N1,389 during the session, Central Bank of Nigeria trade data mirrored rather steady but cautious market activity.
With total interbank turnover of $83.44 million across several transactions, the average exchange rate for the day was N1,381.86 per dollar.
Falling to $49.6 billion as of March 23 from $49.8 billion reported days before, Nigeria’s external reserves show ongoing pressure on the nation’s FX buffers.
The News Chronicle gathered that, as investors are wary in the face of political unrest and changing monetary policy expectations in significant countries, the naira’s movement is being influenced not just by local liquidity circumstances but also by global uncertainty.
With the US dollar holding firm against important currencies, currency movements remained modest across world markets. Expectations of sustained high interest rates in the United States and ongoing tensions in the Middle East continue to affect capital flows into developing nations like Nigeria.
While the naira has shown relative stability in recent sessions, analysts say underlying pressures linked to reserve levels and external factors could continue to shape its near term direction.
