The naira weakened to N1,387 against the dollar at the close of March, reversing gains recorded in February and underscoring renewed pressure in Nigeria’s foreign exchange market.
Despite a brief period of stability, data from the Central Bank of Nigeria reveal the currency struggled to maintain its prior momentum. Rising from about N1,367 in February to N1,340, the naira boosted tentative hope for a potential recovery trend.
March, by contrast, had a different narrative. Driven mostly by global unrest and a stronger US dollar, the currency opened near N1,376 before slipping to about N1,425 over the first week. It subsequently swung within a small range, finally landing at N1,387 by the end of the month.
With foreign reserves declining and inflows falling, exacerbating pressure on the currency, The News Chronicle gathered that the slow fall reflects sustained external pressures rather than a quick market shock.
While exporters may profit from better conversion rates, analysts claim the milder naira might increase import costs and feed inflation. Still, constant fluctuations in the exchange rate complicate planning for companies and investors.
As reserves fall throughout the time and worldwide uncertainties persist, the apex bank’s policy actions to steady the market and rebuild confidence in the next months draw attention.
