Nigeria’s currency depreciated further at the official foreign exchange market, closing at N1,369 per dollar, as declining external reserves and sustained demand for foreign currency continued to pressure the market.
What You Need to Know
The naira weakened from N1,361.5/$ recorded in the previous trading session, marking its weakest level since early April 2026 and extending a recent downward trend.
Data from the Central Bank of Nigeria (CBN) shows that the currency has steadily lost value from around N1,349.67/$ at the start of the previous week, reflecting persistent volatility in the official market.
Don’t Miss this: Naira Weakens to N1,355 per Dollar as Nigeria’s External Reserves Slip to $48.48 Billion
At the same time, Nigeria’s external reserves declined by approximately $731 million within April, dropping from about $49.18 billion at the beginning of the month to roughly $48.44 billion by April 24.
Implications
The decline in reserves signals reduced foreign exchange buffers available to support the naira. External reserves are critical for currency stability, as they enable the CBN to intervene in the market and meet dollar demand.
Sustained drawdowns suggest ongoing pressure from FX interventions, external debt obligations, and constrained inflows, all of which limit the central bank’s ability to defend the currency effectively.
Despite a slight weakening of the U.S. dollar globally and rising oil prices, domestic supply constraints in Nigeria’s FX market continue to outweigh external relief factors.
Insight
The current trajectory reflects a structural imbalance: demand for foreign exchange remains elevated while inflows—particularly from oil revenues and foreign investment—have not scaled sufficiently to stabilize liquidity.
Don’t Miss this: Naira Weakens to N1,355 per Dollar as Nigeria’s External Reserves Slip to $48.48 Billion
Continued reserve depletion increases the risk of further naira depreciation unless inflows improve or demand pressures ease. Analysts remain focused on whether ongoing FX reforms and potential inflow boosts can restore confidence and stabilize the exchange rate in the near term.
Source : Nairametrics
