Naira Falls to N1,341.35/$ at Official Market

Nigeria’s currency weakened at the official foreign exchange market, reflecting sustained pressure from heightened dollar demand, according to figures released by the Central Bank of Nigeria.

Data from the apex bank showed the naira closing at N1,341.35 to the dollar at the official window. 

This represents a N3.25 drop from the N1,338.10 recorded a day earlier, underscoring persistent volatility in the regulated segment of the market.

However, the narrative differed in the parallel market. 

There, the local currency appreciated by N25, trading at N1,340 per dollar compared to N1,365 previously. 

The gain suggests improved liquidity or reduced speculative demand outside the formal banking channel.

Official rates record broad-based decline

A breakdown of benchmark rates revealed that pressure was not limited to a single pricing indicator.

The NAFEX rate depreciated by N2.08 to close at N1,338.75 per dollar. Similarly, the NFEM Volume Weighted Average Price (VWAP) slipped by N3.24 to settle at N1,341.35 per dollar.

Meanwhile, the CBN closing rate declined more sharply, shedding N6.00 to finish at N1,346.00 per dollar.

Dollar Demand Drives Market Sentiment

Market participants attributed the weakness at the official window to increased demand for foreign exchange, particularly amid cautious positioning by Foreign Portfolio Investors.

“Risk aversion remains elevated, and that has tilted the market toward stronger dollar bids,” a currency analyst said. 

“As long as demand outpaces supply, the naira will continue to face intermittent pressure.”

During the trading session, intraday rates fluctuated between a high of N1,350.00 and a low of N1,332.00, highlighting ongoing price swings within the market.

Analysts, however, said the near-term trajectory of the naira would depend largely on liquidity conditions and the central bank’s intervention strategy aimed at stabilising the foreign exchange framework.