The Nigerian Naira recorded a marginal depreciation against the US dollar at the official foreign exchange market on Wednesday, according to data released by the Central Bank of Nigeria (CBN).
The CBN figures show that the Naira traded at ₦1,549.26/$1, a slight weakening from ₦1,549.04/$1 on Tuesday — a drop of ₦0.22.
This marks the third consecutive day of depreciation for the Naira at the official market this week, underscoring persistent pressure on the local currency despite the apex bank’s ongoing forex reforms and intervention efforts.
However, the story was different in the parallel (black) market, where the Naira strengthened, gaining ₦5 to close at ₦1,590/$1, compared to ₦1,595/$1 on Tuesday.
Mixed market sentiment as Naira gain and depreciates
The divergent movements in both markets highlight mixed sentiments as Nigeria continues to grapple with exchange rate volatility. While speculative activity and dollar scarcity continue to weigh on the official rate, improved liquidity and reduced demand may be contributing to the Naira’s stability at the black market.
The Naira’s instability remains a major concern for businesses and investors, as the country struggles with inflation, dwindling foreign reserves, and reliance on imports. Despite efforts by the CBN to unify exchange rates and curb speculation, confidence in the local currency remains fragile.
Market analysts have called for sustained fiscal discipline, increased non-oil exports, and better monetary coordination to support the Naira and ease forex pressures in the coming month.
