The Nigerian naira has started the week on a bearish note, recording a marginal depreciation against the US dollar at the official foreign exchange market. According to data from the Central Bank of Nigeria, the naira weakened to N1,488.60 on Monday, down from N1,487.90 on Friday. This represents a decline of N0.7 against the dollar.

The slight depreciation occurred despite the country’s external reserves rising to a six-year high of $42.03 billion as of September 19, 2025. The increase in foreign reserves is a positive development for the Nigerian economy, as it provides a cushion against external shocks and supports the stability of the naira.

In contrast, the naira remained stable at the black market, exchanging at N1,522 per dollar on Monday, the same rate as on Friday. The black market rate is often seen as a benchmark for the true value of the naira, as it reflects the demand and supply of foreign currency in the unofficial market.

The rise in external reserves is a significant milestone for Nigeria, as it indicates an improvement in the country’s balance of payments position. The apex bank’s data shows that the reserves have been consistently rising, reaching a year’s high of $42.03 billion. This increase is expected to support the naira and maintain economic stability.

The marginal depreciation of the naira against the dollar at the official market may be due to various factors, including demand and supply imbalance. However, the stability of the naira at the black market suggests that the currency is holding its ground against the dollar. As the Nigerian economy continues to evolve, the performance of the naira will be closely watched by investors, businesses, and individuals. The current trends in the foreign exchange market will likely have implications for the country’s trade balance, inflation, and overall economic growth.