The naira closed the week weaker at the official foreign exchange window, slipping by 0.98 per cent to settle at N1,456.72 to the dollar as rising demand for the greenback outpaced available inflows.
The currency traded within a broad band of N1,440 to N1,460 over the week, highlighting the volatility that continues to define Nigeria’s foreign exchange market.
A similar trend played out in the parallel market where the naira eased marginally to around N1,475 per dollar, a sign that supply constraints and strong dollar appetite among importers and corporates remain significant drivers of market direction.
Analysts note that the latest movement reflects persistent structural challenges in the FX landscape. Despite ongoing interventions by the Central Bank of Nigeria, subdued foreign inflows and the steady pull of demand continue to pressure the currency. Midweek trading was particularly unstable as investors adjusted positions ahead of fresh macroeconomic indicators.
The News Chronicle observed that rising external reserves offered some temporary cushion. Nigeria’s gross foreign reserves increased by 1.1 per cent week on week to 44.12 billion dollars, supported by firmer crude receipts, improved non oil inflows, and a positive trade balance. This provided the CBN with additional room to manage liquidity even though long standing supply gaps have not fully eased.
Global oil prices added another challenge to Nigeria’s currency outlook. An unexpected rise in United States crude inventories pushed major benchmarks downward. West Texas Intermediate fell to 58.91 dollars per barrel, Brent slipped to 63 dollars, and Nigeria’s Bonny Light moderated to 64.28 dollars, reflecting the renewed concern over weak global demand and oversupply risks.
Market analysts expect the foreign exchange environment to remain cautious in the coming days. Sentiment is now closely tied to the consistency of inflows from remittances, portfolio investments, and petroleum revenue, with any sharp deviation likely to intensify volatility.
