The Naira came under renewed pressure in the foreign exchange market, weakening to N1,355/$ on Thursday amid persistent volatility and declining external reserves.
Data from the Central Bank of Nigeria (CBN) showed the naira had depreciated from N1,348.1/$ recorded on Wednesday.
The latest movement extends a gradual downward trend seen in recent sessions, reflecting both domestic pressures and global market dynamics.
What the data is saying
Recent figures indicate a steady depreciation of the naira alongside a marginal decline in Nigeria’s external reserves, pointing to sustained pressure in the foreign exchange market.
- The naira weakened to N1,355/$ on Thursday from N1,348.1/$ on Wednesday.
- Intraday trading data showed that the currency fluctuated between N1,350/$ and N1,355.8/$, with a simple average rate of N1,354.19/$. The number of interbank deals stood at 46, according to CBN data.
- A week earlier, the currency had closed at N1,341.01/$, highlighting a consistent downward trend.
- External reserves declined to $48.48 billion from $48.54 billion recorded at the start of the week on April 20, 2026.
- The drop in reserves signals reduced capacity for sustained intervention in the FX market.
The data demonstrates persistent demand pressures and limited supply in the foreign exchange market.
More Insights
Global developments also played a significant role, as rising geopolitical tensions boosted demand for the U.S. dollar, further weakening emerging market currencies, including the naira.
- The U.S. dollar strengthened on safe-haven demand amid stalled peace negotiations between the United States and Iran.
- Tensions around the Strait of Hormuz raised concerns over potential oil supply disruptions, supporting crude prices and the dollar.
- The dollar index hovered around 98.82 and remained on track for a weekly gain of 0.58 per cent.
- Other currencies, including the euro, British pound, and Japanese yen, also showed weakness against the dollar.
Emerging market currencies such as the Philippine peso, Malaysian ringgit, and Indian rupee similarly recorded losses.
What you should know
The current outlook for the naira reflects a complex interplay of domestic and global factors, with analysts highlighting key areas that will determine future stability.
- Higher oil prices could support Nigeria’s FX inflows, but global uncertainties may offset these gains.
Earlier this week, Nairametrics reported that the Naira depreciated to N1,349/$ on Monday, down from N1,342.5/$ recorded at the close of trading on Friday.
Recently, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, had said that the recent decline in Nigeria’s external reserves should not be a cause for concern.
Cardoso said he is not particularly concerned about the decline in external reserves, but rather about how Nigerians react to minor fluctuations in the figures, which he suggested are often overinterpreted.
- The CBN has projected that reserves could rise to $51 billion by the end of 2026.
- This projection forms part of a broader macroeconomic stabilisation strategy aimed at strengthening external buffers.
