The official dollar-naira exchange rate declined further on Monday, deepening the depreciation of the Nigerian currency. Data from the Central Bank of Nigeria (CBN) indicated that the naira closed at N1,373.16 per U.S. dollar, a decrease from N1,361.39 at the end of trading on Friday. This shift represents an 11.77-naira decline against the dollar within a single trading session. In contrast, the parallel or black-market rate remained stable at N1,395 to the dollar, matching the level recorded on Friday.
Despite the naira’s decline, the CBN reported a slight increase in its foreign-exchange reserves, which rose to $48.36 billion on May 8, up from $48.33 billion the previous day. The recent weakening of the naira follows a broader trend of pressure that began earlier in the week, culminating in a new low for the official rate on Friday, which ended the week on a negative note. Analysts attribute this decline to a combination of limited dollar liquidity, ongoing external payment obligations, and market expectations ahead of the central bank’s upcoming monetary policy meetings.
The CBN has been attempting to stabilize the market through various interventions, including recent injections of foreign currency and tightening access to the official window. However, the significant disparity between the official and parallel markets highlights ongoing structural challenges within Nigeria’s foreign-exchange system. Stakeholders are closely monitoring any potential policy shifts that could help narrow this gap and restore confidence in the naira.
Future movements in the exchange rate are likely to depend on the evolution of external reserves, the pace of export earnings, and the government’s broader fiscal and monetary strategies. As of today, the official dollar-naira rate stands at N1,373.16, indicating a continued trajectory of depreciation for Nigeria’s currency.
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