The Nigerian Naira weakened against the US dollar on Friday, marking its first depreciation after four consecutive days of gains in the official foreign exchange market. According to data from the Central Bank of Nigeria (CBN), the Naira closed at N1,343.64 per dollar, down from N1,342.30 the previous day, reflecting a decline of N1.34 in a single trading session. Earlier in the week, the local currency had shown an upward trend, rallying for four days before experiencing this reversal.
In the parallel market, often referred to as the black market, the Naira remained relatively stable, trading at N1,410 per dollar throughout the week, as reported by Bureau de Change operators in Abuja’s Wuse Zone 4. This depreciation occurs against the backdrop of Nigeria’s foreign exchange reserves, which stood at $48.65 billion as of April 16, 2026. While these reserves are robust, fluctuations in the exchange rate highlight ongoing challenges in Nigeria’s forex market, including supply constraints and demand pressures.
The performance of the Naira is closely monitored, as it significantly impacts inflation, import costs, and overall economic stability in Africa’s largest economy. The CBN has implemented various measures to stabilize the currency, including interventions in the forex market and policies aimed at boosting non-oil exports to increase dollar inflows. Analysts suggest that the recent depreciation may be linked to seasonal demand for foreign currency, particularly in anticipation of the Easter holiday period when businesses and individuals typically increase their forex purchases.
Despite the recent decline, the broader trend of Naira stability in the parallel market suggests that market sentiment remains cautiously optimistic. As Nigeria continues its economic recovery, the exchange rate will remain a critical indicator of the country’s financial health. Stakeholders are expected to closely monitor the CBN’s next steps to ensure sustained stability in the forex market and support the Naira’s value in the coming weeks.
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