The naira continued its downward trajectory in both the official and parallel FX markets on Wednesday, despite the Central Bank of Nigeria (CBN) releasing $100 million to commercial banks earlier in the week in an effort to stabilise liquidity. The intervention reduced the number of active Bureau de Change operators to 82, yet currency pressures persisted.
The market remains weighed down by an imbalance between rising demand for foreign currency to settle international obligations and weaker inflows from major FX channels such as portfolio investors, exporters, non-bank corporates including oil-producing multinationals, and retail contributors.
Year-end payment commitments have significantly increased FX demand, but total inflows have stayed below $900 million, according to weekly market figures, well under the $1.4 billion recorded at the start of Q4.
The naira depreciated by 0.07% at the official window, closing at N1,455.38 per dollar, based on data from the CBN’s daily FX update. At the parallel market, the currency weakened further to N1,475 per dollar, reflecting persistent supply strain and negative sentiment across official and informal channels.
Last week, the apex bank injected $150 million into the official market after spending $400 million in November to sterilise excess naira in circulation. However, strong dollar demand sharply outpaced available supply, pushing the local currency to fresh lows.
MarketForces Africa confirmed the CBN’s new intervention, which was aimed at boosting supply and slowing depreciation, although traders report that liquidity pressures remain pronounced.
Meanwhile, Nigeria’s gross external reserves climbed to $45.382 billion in the midst of volatile global commodity price trends and foreign investment uncertainty.
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