The Nigerian naira reversed its recent gains at the official foreign exchange market on Wednesday, posting its first depreciation against the dollar this week after two consecutive sessions of appreciation.
Data released by the Central Bank of Nigeria showed the local currency weakened to N1,350.41 per dollar at the official window, compared with N1,343.32 recorded on Tuesday. The movement represents a day-on-day decline of N7.09.
The downturn snapped a brief rally that saw the naira strengthen on both Monday and Tuesday at the Nigerian Autonomous Foreign Exchange Market, the official trading platform.
In contrast, the parallel market remained stable. The naira Traded unchanged at N1,405 per dollar on Wednesday, matching the rate recorded in the previous session. The persistent gap between the official and parallel rates underscores ongoing liquidity pressures and divergent pricing dynamics in the country’s foreign exchange landscape.
Nigeria’s external reserves stood at $52.32 billion, according to the latest central bank figures. The reserves position remains a key metric for market participants assessing the monetary authority’s capacity to intervene in the currency market and support import cover.
Wednesday’s depreciation highlights the fragility of recent improvements and the sensitivity of the naira to shifts in dollar demand and supply. Analysts have pointed to structural imbalances, including limited foreign portfolio inflows and elevated import bills, as factors that could sustain volatility in the near term.
The central bank has maintained its commitment to a unified exchange rate framework, though market observers note that achieving true convergence between official and parallel rates will require sustained inflows and deeper structural reforms.
