The naira posted a mild decline against the US dollar across both the official and parallel foreign exchange markets, while the country’s external reserves also recorded a marginal drop, signaling continued pressure in the currency market.
Latest figures from daily exchange rate trackers show the naira weakened at the Nigerian Autonomous Foreign Exchange Market (NAFEM), extending a short losing streak that has pushed the currency to its softest level in about three weeks.
At the official market, the naira closed at ₦1,361.50/$ on April 24, compared with ₦1,355.00/$ on April 23. This represents a depreciation of ₦6.50 or 0.48 percent.
In the parallel market, also known as the Bureau De Change segment, the naira traded at ₦1,390/$ on April 27, weaker than ₦1,385/$ recorded on April 24. That reflects a ₦5 decline or 0.36 percent.
Other major currencies remained stable in the unofficial market.
The British pound held steady at ₦1,830/£, while the euro remained unchanged at ₦1,590/€. The Canadian dollar also traded flat at ₦1,000/CAD.
The spread between the official and parallel market dollar rates stood at roughly ₦28.50, a relatively narrow premium compared with the significantly wider gaps seen during periods of elevated market volatility.
External Reserves Decline
Nigeria’s external reserves also edged lower, suggesting persistent demand for foreign exchange and possible intervention activity.
Reserves stood at $48.449 billion on April 23, down from $48.480 billion on April 22. The $31 million decline represents a 0.06 percent drop.
Analysts say the naira’s latest weakness reflects sustained dollar demand from importers, manufacturers, travelers, and investors, despite ongoing reforms aimed at improving liquidity and price discovery in the foreign exchange market.
For households and businesses, the softer naira means slightly higher costs for imports, overseas tuition payments, travel expenses, and dollar-denominated obligations.
