The Nigerian naira came under pressure in the official foreign exchange (FX) market on Thursday as demand for the US dollar surged beyond available supply, weakening the local unit.
Market data showed that the naira depreciated to N1,510 per dollar at the intraday spot level, with the lowest exchange rate trading at N1,487. Analysts linked the decline to reduced FX inflows and limited interventions from the Central Bank of Nigeria (CBN), which had recently injected over $38 million into the market.
FX traders explained that the lack of fresh intervention and lower participation from offshore investors increased demand pressure. Despite the pullback, analysts remain optimistic about the naira’s outlook, expecting future dollar sales by the CBN as well as inflows from foreign portfolio investors at the next OMO auction.
In the parallel market, the naira also weakened, closing at an average of N1,520 per dollar. Analysts suggested that while the currency faces intermittent volatility, the apex bank is expected to act if the exchange rate crosses critical levels.
Meanwhile, Nigeria’s external reserves inched closer to the $42 billion mark. Figures released by the CBN indicated that gross reserves rose to $41.954 billion on Wednesday, up from $41.899 billion the day before, despite uncertainty in the global commodity market.
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