The naira extended a three-session slide versus the dollar at Nigeria’s official foreign exchange window on Thursday, according to central bank figures, even as foreign reserves posted another large increase. In parallel, the currency’s unofficial market rate held steady, suggesting mixed signals for liquidity conditions and expectations among traders.
Key takeaways
- At the official market, the naira eased to 1,380.11 per dollar on Thursday from 1,380.07 on Wednesday.
- The day-to-day change at the official window was a small weakening of 0.03 naira versus the dollar.
- In the black market, the naira was unchanged at 1,400 per dollar on Thursday, matching Wednesday’s level.
- Foreign reserves rose again on Thursday, adding 51.21 billion dollars.
- Reporting indicated the naira depreciated on Tuesday, Wednesday and Thursday against the dollar in the official segment.
Official market: small slide continues
Central Bank data showed that the naira weakened slightly against the US dollar at the official exchange window on Thursday. The currency moved to 1,380.11 per dollar, compared with 1,380.07 per dollar exchanged on Wednesday. On a like-for-like basis, this reflected a marginal decline of 0.03 naira from one day to the next.
Unofficial market: rate holds steady
Across the black market, the Nigerian currency remained flat. The rate was 1,400 per dollar on Thursday, the same level recorded on Wednesday, indicating no immediate shift in the informal pricing of the dollar relative to the naira.
Reserves rise, but depreciation persists in reporting
Thursday’s official market movement came alongside a reported increase in Nigeria’s foreign reserves. The reserves grew by an additional 51.21 billion dollars on Thursday, a development that can support confidence in the currency’s external buffers. Nevertheless, the report highlighted that the naira depreciated on Tuesday, Wednesday and Thursday against the dollar at the official foreign exchange market, even as the reserves continued to climb.
