Nigeria’s currency weakened again in the official market, settling around N1,355 to the dollar as pressure in the foreign exchange space persists.
Latest figures from the Central Bank of Nigeria show the naira slipping from about N1,348 the previous day, extending a steady decline seen over recent sessions.
Reflecting continuous demand for dollars and constrained supply, trading data show the currency oscillated within a narrow band throughout the day.
Concurrent with these developments, the country’s external reserves fell marginally to almost 48.48 billion dollars, a small decline that suggests less power for continuous market intervention.
The News Chronicle notes that both local liquidity issues and worldwide uncertainty are forming the newest movement. Investors seeking safer assets have boosted the U.S. dollar, pressuring emerging-market currencies, including the naira, as geopolitical tensions grow.
Many currencies have also weakened against the dollar across global markets, underscoring a broader trend beyond Nigeria.
Although higher crude oil prices could boost foreign currency inflows, analysts warn that instability in global markets could offset any benefits, particularly for countries heavily reliant on oil exports like Nigeria, where the naira is already under pressure.
Despite the dip in reserves, CBN Governor Olayemi Cardoso has downplayed concerns, urging a measured interpretation of short-term fluctuations.
The apex bank maintains that reserves could recover toward 51 billion dollars by year’s end as part of ongoing efforts to stabilize the economy.
For now, the naira remains under close watch as market forces continue to test its resilience.
