The naira came under renewed pressure in the official foreign exchange market, driven by heightened demand for foreign currency, particularly the US dollar.
The naira weakened to ₦1,510/$ on Thursday, while in the same session, the exchange rate traded at a low of ₦1,487$, data from the Central Bank of Nigeria (CBN) showed.
According to FX traders, the local currency came under pressure in the absence of further FX interventions.
Lower inflows from offshore investors, combined with growing demand for the dollar, have eroded the naira’s stability at the official window.
Analysts caution that without sustained inflows or intervention, these pressures may persist. The naira’s outlook remains somewhat bullish, but only if interventions occur as anticipated and offshore investors return, especially ahead of the next OMO (Open Market Operations) auction.
In the parallel (black) market, the naira depreciated as well, closing at an average of ₦1,520/$. Broadstreet analysts told MarketForces Africa that while the pressure tends to be intermittent, the CBN is expected to influence exchange‐rate direction should the rate hit what they call the “red line.”
Meanwhile, Nigeria’s gross external reserves inched higher, rising to US$41.954 billion as of Wednesday, up from US$41.899 billion the previous day.
Despite this modest gain, global commodity market uncertainties loom as a risk to reserve stability.
Continued reserve support, coupled with foreign competition for dollar inflows, will be crucial in shaping the naira’s trajectory in the coming weeks.