The naira extended its decline on Tuesday, closing at N1,383 per US dollar as renewed pressure in the foreign exchange market coincided with a further dip in Nigeria’s external reserves.
This is according to data on the Central Bank of Nigeria’s (CBN) website.
The latest movement comes amid a mixed global currency environment, where the US dollar strengthened ahead of a closely watched Federal Reserve policy decision and ongoing geopolitical tensions in the Middle East continued to support safe-haven demand.
What the data is saying
CBN figures show the naira weakened from N1,369/$ on Monday to N1,383/$ on Tuesday, marking a continued depreciation trend in recent sessions.
- The currency traded between N1,367.5/$ and N1,385/$ during the day.
- The simple average rate stood at N1,380.19/$ based on intraday movements.
- Tuesday’s close represents the weakest level since April 7, 2026, when it traded at N1,389/$.
- Compared with last Tuesday’s close of N1,350.99/$1, the naira has recorded a notable week-on-week depreciation.
The pressure in the FX market has been mirrored by a decline in external reserves. CBN data shows reserves fell to $48.38 billion as of April 27, 2026, down from $48.51 billion recorded on April 21, 2026.
- This reflects a drop of about $124 million within one week.
- The decline suggests continued FX market interventions and external obligations payments.
In the global market, the US dollar held firm as investors awaited the Federal Reserve’s policy decision, widely expected to keep interest rates unchanged. The dollar index steadied around 98.57, supported by safe-haven flows linked to geopolitical uncertainty.
The euro and pound traded in relatively tight ranges, while the Japanese yen remained near the psychologically sensitive 160 level.
Get up to speed
Nigeria’s FX market has remained under pressure in recent weeks despite periodic stabilisation efforts by monetary authorities. The combination of persistent import demand, limited FX inflows, and reserve drawdowns continues to weigh on the naira’s performance.
- Nairametrics reported earlier that traders have said the CBN had maintained restrictions on Bureau De Change (BDC) operators’ access to the official foreign exchange market, citing concerns over control and past abuses.
The external reserves, which act as a buffer for currency stability and FX interventions, have seen intermittent declines in April, reinforcing concerns about the sustainability of market support operations.
What you should know
The simultaneous weakening of the naira and decline in external reserves signal continued fragility in Nigeria’s FX fundamentals, even as global dollar dynamics add external pressure.
Recently, the CBN Governor, Olayemi Cardoso, had dismissed concerns over the recent reserve decline, insisting the trend should not trigger alarm.
Despite the recent dip, the CBN maintains an optimistic outlook for the country’s external reserves.
- The apex bank had previously projected that reserves could reach $51 billion by the end of 2026 as part of its broader macroeconomic stabilization and confidence-restoration agenda.
