The naira depreciated further at the official foreign exchange window, marking its seventh consecutive session of losses against the United States dollar amid persistent FX outflows.
At the Nigerian Foreign Exchange Market (NFEM), the local currency weakened by ₦3.70 to close at ₦1,359.81/$1, compared with ₦1,356.11/$1 recorded previously, according to data released by the Central Bank of Nigeria.
Intraday trading data showed the naira fluctuated between a low of ₦1,356.50/$1 and a high of ₦1,362.90/$1. Market participants attributed the sustained pressure to increased foreign payment obligations that outpaced dollar supply in the official window.
In response to the dollar shortage, the apex bank injected $100 million into the market on Tuesday, offering the funds to authorised dealers and banks. Despite the intervention, the currency’s downward trajectory persisted.
Analysts, however, maintained that the development does not signal systemic stress, citing recent FX mop-up operations aimed at restoring equilibrium in the market.
External reserves were last reported at $49.39 billion, reflecting an accretion of $120.05 million, supported by oil receipts and diaspora remittances. The reserve build-up is expected to provide a buffer against external shocks and reinforce exchange rate stability in the near term.
Market watchers note that sustained inflows from oil exports and remittances remain critical to maintaining confidence among foreign portfolio investors and policymakers.
