The naira edged lower against the US dollar on Wednesday in both the official foreign exchange window and the parallel market, extending a recent weakening trend despite a rise in Nigeria’s external reserves. Central Bank of Nigeria figures put the currency at 1,360.07 per dollar at the official market on Wednesday, compared with 1,357.18 per dollar on Tuesday. On a day-to-day basis, that translates into a decline of 2.89 naira per dollar in the official window.
In the black market, the move was slightly larger. The naira was quoted at 1,400 per dollar on Wednesday, down from 1,395 per dollar the previous day, indicating a 5 naira depreciation. The broader slide across both segments comes as Nigeria’s external reserves climbed further to 50.89 billion dollars as of Tuesday, according to the same set of data cited in the report. The report also noted that the naira had strengthened on Monday but reversed course on Tuesday, before continuing to soften on Wednesday.
