Naira Depreciates Against Dollar After Two-Day Gain

The Nigerian naira weakened against the US dollar on the official foreign exchange market on Thursday, reversing a two-day streak of significant gains.

Data from the Central Bank of Nigeria (CBN) showed the naira depreciated to N1,366.06 per dollar, down from N1,358.28 on Wednesday. This represents a day-to-day loss of N7.78 for the local currency in the official market. The move follows a notable appreciation of N32.08 between Tuesday and Wednesday.

Conversely, the parallel market (black market) rate remained unchanged, with the naira holding steady at N1,460 per dollar—the same rate recorded the previous day. The divergence between the official and unofficial rates continues to highlight a persistent gap in the country’s foreign exchange ecosystem.

The CBN also reported that Nigeria’s gross foreign reserves stood at $46.81 billion as of February 4, 2026. The reserves, a critical buffer for the economy, have shown resilience in recent periods, supporting the central bank’s interventions in the forex market.

The latest depreciation in the official window underscores the volatile nature of the naira’s exchange rate, even amid stable foreign reserve levels. Market analysts note that short-term fluctuations often reflect immediate demand-supply dynamics at the official window, while the parallel market rate remains influenced by broader economic sentiment and access constraints.

The central bank’s ongoing efforts to stabilize the currency through various policy tools, including forex allocations and restrictions, continue to face challenges from underlying economic pressures and speculative demand. The resilience of the black market rate suggests a floor of confidence or a ceiling of demand that the official market movements have yet to breach significantly.

The naira’s movement will be closely watched for signs of sustained trend or continued oscillation, as the nation navigates complex macroeconomic conditions including inflation, revenue pressures, and the quest for a more unified exchange rate regime.

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