The naira extended its decline on Wednesday, weakening to N1,391 per dollar as global market pressures and a stronger US currency weighed on Nigeria’s foreign exchange market.
Data from the Central Bank of Nigeria showed the local currency fell from N1,383.5 recorded a day earlier, trading within a range of N1,376 to N1,391.5 during the session. Market activity also decelerated; interbank turnover decreased to $55.7 million, and fewer transactions were documented than the previous day.
The most recent movement reflects growing investor prudence, as worries about inflation in developed countries continue to shape global currency patterns. The US dollar advanced further against key currencies, thereby increasing pressure on emerging-market currencies such as the naira.
Particularly, tensions related to Iran, which keep affecting worldwide investor mood, The News Chronicle gathered that a mix of decreasing external reserves, decreased market liquidity, and increased geopolitical uncertainty is driving the pressure on the naira.
Nigeria’s foreign reserves fell slightly to $49.57 billion, thereby strengthening doubts about the nation’s ability to maintain the currency in the face of persistent foreign currency demand.
Across global markets, the euro and British pound also lost ground against the dollar, while expectations of tighter monetary policy in the United States continue to shape capital flows.
Analysts say these combined factors could keep the naira under pressure in the near term despite ongoing policy adjustments.
