The naira slid further versus the US dollar on Wednesday in Nigeria’s official foreign exchange window, while holding steady in the informal market, as new central bank figures showed a rise in external reserves.
Key takeaways
- At the official FX market, the naira weakened to 1,379.07 naira per dollar on Wednesday.
- That compares with 1,375.75 per dollar on Tuesday, a daily fall of 3.32 naira.
- In the black market, the naira was unchanged at 1,415 per dollar on Wednesday.
- Central bank data put Nigeria’s external reserves at $51.64 billion, supporting the mixed price action.
- Tuesday already saw naira depreciation across both exchange markets, setting the backdrop for Wednesday’s follow-through.
Official market naira weakens
Wednesday brought another round of pressure on the naira in the official foreign exchange market. Central Bank of Nigeria data showed the currency fell to 1,379.07 per dollar, after trading at 1,375.75 a dollar on Tuesday. On a day-to-day basis, that equated to a decline of 3.32 naira against the greenback.
Informal market stays steady as reserves rise
In contrast, the informal or black market showed no movement. The naira remained at 1,415 per dollar on Wednesday, matching Tuesday’s rate. This split reaction across the two segments of the currency market comes alongside an improvement in Nigeria’s external buffers: the central bank reported that external reserves climbed to $51.64 billion.
The latest readings also follow a shift seen on Tuesday, when the naira depreciated against the dollar in both the black and foreign exchange markets. Wednesday’s developments therefore reflect continued monitoring by traders as reserve levels rise, even as the official rate slips further.
