The naira slid versus the US dollar for a third straight trading session at Nigeria’s official foreign exchange market on Wednesday, extending a short-term weakening streak as policymakers monitor liquidity and external buffers. Central bank data showed the currency eased to 1,366.71 per dollar, from 1,365.53 per dollar on Tuesday. That move implies a depreciation of 1.18 naira against the dollar at the official window. In the parallel market, the naira also lost ground, weakening by 5 naira to 1,415 per dollar from 1,410 per dollar the prior day. The broader backdrop is Nigeria’s foreign reserves, which were reported at 51.94 billion dollars.
Official market: third straight session of losses
At the official foreign exchange market, the naira recorded another day of decline for the third consecutive session this week.
- The naira traded at 1,366.71 per US dollar on Wednesday.
- On Tuesday, it had closed at 1,365.53 per US dollar.
- Wednesday’s change represents a fall of 1.18 naira against the dollar at the official window.
- This marked the third straight decline in the official market during the current week.
Black market: dollar rates rise
In the unofficial or “black” market, the naira weakened alongside the official move, with the dollar fetching a higher rate.
- The exchange rate was 1,415 naira per dollar on Wednesday.
- On Tuesday, the rate stood at 1,410 naira per dollar.
- The naira therefore depreciated by 5 naira in the black market over the day.
Reserves in focus as pressure builds
The latest exchange-rate movements come as investors and businesses continue to track Nigeria’s external position. Foreign reserves were reported at 51.94 billion dollars, a figure that provides context for the country’s ability to meet external obligations and influence currency conditions.
What the latest figures signal
With the naira now down for three consecutive trading sessions versus the dollar at the official foreign exchange market this week, the pattern suggests persistent currency pressure rather than a one-day fluctuation. The simultaneous weakening in both the official and black markets also points to broad-based demand for dollars across trading venues.
