National currency weakness continues despite policy support. The Nigerian naira weakened further against the US dollar on Tuesday at the official foreign exchange market, closing at about ₦1,353.5 per dollar, reflecting continued depreciation despite interventions by the Central Bank of Nigeria (CBN).
Market data show the rate opened lower and worsened from previous sessions, signalling persistent pressure on the naira in the official FX window.
The CBN’s Monetary Policy Committee lowered the benchmark interest rate by 50 basis points to 26.50 per cent in its latest meeting, aiming to support economic conditions and maintain exchange stability.
Despite the cut, investors maintained cautious positions, contributing to the currency’s mild further weakening in official trading.
President Bola Ahmed Tinubu stated the naira is expected to strengthen toward ₦1,000 per dollar in coming weeks, reflecting government confidence in ongoing reforms, even as current market rates show continued depreciation in practice.
Reports from market sources (black market daily) show the naira also depreciating in informal trading segments, with notable increases in the parallel market exchange rate compared with recent trading ranges, underscoring broad-based pressure.
Drivers of depreciation include persistent high demand for dollars for imports and external obligations, cautious investor sentiment, and structural liquidity conditions in the FX market that have kept downward pressure on the naira, despite the CBN’s liquidity provision and rate management.
Source: DailyPost
