The Nigerian Naira weakened against the US dollar at the official foreign exchange market on Monday, March 30, opening the week under pressure even as parallel market rates firmed.
According to data from the Central Bank of Nigeria (CBN), the local currency closed at N1,383.58 per dollar on the official window, depreciating from the N1,380.5766 rate recorded on the previous Friday. This marks a loss of approximately N3.00 for the Naira in the regulated market.
Conversely, multiple Bureau de Change (BDC) operators reported a strengthening of the Naira in the black market. The parallel market rate closed at N1,415 per dollar on Monday, improving by N5 from the N1,425 rate seen at the end of the prior week.
This divergence between the official and parallel markets follows a continued reduction in Nigeria’s foreign exchange reserves. Data indicates that reserves stood at $49.44 billion as of March 27, down from $50 billion on March 12, representing a decline of $560 million over two weeks.
The movement on the official market reverses gains recorded in the preceding days. As previously reported, the Naira had appreciated against the dollar on Thursday and Friday of last week in the CBN’s trading window.
The persistent gap between the official and black-market rates underscores the ongoing challenges in Nigeria’s foreign exchange ecosystem. Analysts note that the trajectory of external reserves is a critical factor influencing currency stability and market confidence. The direction of the official exchange rate in the coming days will be closely watched for signals on the effectiveness of current monetary policy interventions.
The CBN has implemented various measures aimed at unifying the exchange rate and boosting liquidity, including the recent introduction of the Electronic Foreign Exchange Matching System (EFEMS). Market participants suggest that sustainable appreciation will depend on increased dollar supply from both export earnings and foreign investment, alongside a prudent management of the nation’s reserve levels.
