Key points
- The naira closed the week weaker at N1,380.93/$ at the official foreign exchange market.
- The currency lost 82 kobo on Friday compared to Thursday’s closing rate.
- The naira began the week at N1,369.10/$ before gradually depreciating over subsequent trading sessions.
- The local currency recorded a weekly decline of N11.83 against the dollar.
Main story
The naira ended the trading week on a weaker note at the official foreign exchange market, surrendering gains recorded earlier in the week as it depreciated to N1,380.93 against the United States dollar.
Data published by the Central Bank of Nigeria (CBN) showed that the local currency lost 82 kobo on Friday, representing a marginal decline of 0.05 per cent from Thursday’s closing rate of N1,380.10/$.
The latest performance capped a week of gradual weakening after the naira opened trading on Monday, June 22, at N1,369.10/$, its strongest level for the week.
The currency slipped to N1,370.63/$ on Tuesday before extending losses to N1,380.07/$ on Wednesday. Friday’s closing rate of N1,380.93/$ reflected continued pressure on the local currency despite the relative stability observed in recent weeks.
Overall, the naira shed N11.83 against the dollar during the week, reversing the gains recorded at the start of the trading period.
The movement comes as market participants continue to monitor foreign exchange liquidity conditions, external reserve trends and monetary policy measures aimed at stabilising the currency.
The issues
The naira remains sensitive to fluctuations in foreign exchange supply and demand, with market stability largely dependent on inflows from exports, foreign investment and remittances.
While recent reforms have helped narrow exchange rate volatility compared to previous periods, the currency continues to experience intermittent pressure driven by demand for foreign exchange across key sectors of the economy.
Analysts also continue to watch the impact of monetary policy decisions and broader macroeconomic conditions on exchange rate stability.
What’s Being Said
“The Naira on Friday closed the week with a marginal depreciation at the official foreign exchange market, trading at N1,380.93 to the dollar.” — Central Bank of Nigeria foreign exchange data
“This represented a 0.05 per cent decline when compared with Thursday’s rate of N1,380.10.” — Central Bank of Nigeria foreign exchange data
“The currency, however, opened the week on a positive note, trading at N1,369.10 on Monday, June 22.” — Central Bank of Nigeria foreign exchange data
What’s next
Investors and market participants will continue to monitor foreign exchange inflows, CBN interventions and broader economic indicators for signals on the direction of the naira in the coming weeks.
Attention is also expected to remain on external reserves, oil earnings and measures aimed at improving liquidity in the foreign exchange market.
Bottom line
Although the naira remained relatively stable during the week, it closed slightly weaker than where it started, highlighting the persistent pressures facing Nigeria’s foreign exchange market despite ongoing efforts to stabilise the currency.
