Market News

By Grace Alegba

The Nigerian Naira ended the trading week with a slight depreciation, losing 19 kobo against the U.S. dollar at the official foreign exchange market, according to data published on the Central Bank of Nigeria’s (CBN) official website. 

Nigerian history books

The Naira closed at N1,533.74 on Friday, compared to N1,533.55 on Thursday, reflecting a marginal weakening in its value.

This week’s performance underscores ongoing volatility in Nigeria’s foreign exchange market, driven by a combination of global economic pressures and domestic demand for foreign currency. 

Nigerian history books

The Naira’s trajectory over the week showed minor fluctuations. On Wednesday, it traded at N1,534.52, a slight depreciation from Tuesday’s rate of N1,533.18.

The week began on a relatively positive note, with the Naira gaining marginally on Monday to trade at N1,534.20 against the dollar.

Market analysts attribute the Naira’s modest decline to persistent demand for dollars amid limited foreign exchange supply, a challenge that has persisted despite efforts by the CBN to stabilize the currency.

The bank has implemented measures such as increasing liquidity in the official market and tightening regulations on informal trading to curb speculative activities.

However, external factors, including global oil price dynamics and foreign investment flows, continue to exert pressure on the Naira.

The slight depreciation comes at a time when Nigeria’s economy is navigating broader challenges, including inflationary pressures and trade imbalances.

Economists suggest that sustained interventions by the CBN, coupled with policies to boost export revenues, could help stabilize the Naira in the long term. (NAN)