The Nigerian Naira weakened against the US dollar on Wednesday, recording its first depreciation on the official foreign exchange market after eight consecutive days of appreciation. According to data from the Central Bank of Nigeria (CBN), the local currency closed at N1,353.90 per dollar, down from N1,344.4158 the previous day, representing a daily loss of N9.48.
This movement in the official market contrasts with trends in the parallel market, where the Naira appreciated. The black market rate firmed to N1,420 per dollar on Wednesday, a N10 improvement from the N1,430 quoted the day before. The divergence highlights the persistent gap between the regulated and informal forex segments, a long-standing feature of Nigeria’s currency landscape.
The depreciation ends a notable rally that began on March 9. Over that eight-day period, the Naira had gained a cumulative N51.72 against the dollar in the official window, reflecting the impact of recent Central Bank interventions aimed at stabilising the currency and unifying exchange rates.
The development coincides with published figures on Nigeria’s external reserves. The CBN reported that gross reserves stood at $49.83 billion as of March 17, 2024, a marginal decline that positions the buffers just below the $50 billion threshold. External reserves are a critical gauge of the country’s capacity to support the Naira and meet international payment obligations.
The shift in the official rate suggests a potential recalibration in the currency’s短期 trajectory following the sustained advance. Market watchers often analyse the interaction between daily trading volumes, central bank supply, and reserve levels to assess pressure on the exchange rate. While the black market saw modest appreciation, the official depreciation indicates that demand-side factors may have temporarily outweighed supply in the regulated market.
Analysts note that the trajectory of the Naira remains influenced by a combination of monetary policy, foreign exchange liquidity, and broader economic indicators. The level of external reserves, though still substantial, is closely monitored for its role in providing a buffer against volatility. The Central Bank’s continued management of forex allocations and its policy stance will likely remain pivotal in determining the currency’s near-term performance amid fluctuating oil revenues and domestic economic conditions.
