The Nigerian naira weakened further against the US dollar in the official foreign exchange market on Thursday, extending a recent depreciation trend despite a reported increase in the country’s foreign reserves.
According to data from the Central Bank of Nigeria (CBN), the naira closed at N1,359.81 per dollar on Thursday, a decline of N3.69 from the N1,356.11 rate recorded on Wednesday. This marks the fourth consecutive day of depreciation in the official market, signaling sustained pressure on the local currency. In contrast, the parallel (black) market rate remained stable at N1,375 per dollar, unchanged from the previous day, highlighting the persistent gap between official and unofficial exchange rates.
The decline occurs amid a marginal rise in Nigeria’s foreign exchange reserves. CBN figures show reserves increased to $49.51 billion as of February 25, 2024, up from $49.39 billion the day before. The accumulation typically provides the central bank with greater capacity to defend the currency and stabilize the market. However, the naira’s continued depreciation in the official window suggests that factors such as strong dollar demand for imports, debt servicing, and capital outflows may be outweighing the reserve buffer
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