The Nigerian naira weakened against the United States dollar at the official foreign exchange market as renewed demand for foreign currency put pressure on the local currency.
Data from the Central Bank of Nigeria (CBN) showed that the naira closed at ₦1,329.15 per US dollar, compared with ₦1,326.30 per dollar recorded in the previous trading session. This represents a depreciation of ₦2.85 against the dollar.
The latest decline came despite a significant increase in activity in the foreign exchange market. Interbank FX turnover reportedly rose by about 174 per cent, reaching approximately US$262,120,000 during the trading session.
The renewed pressure on the naira was attributed to increased demand for dollars, particularly for international payment obligations.
At the parallel market, the naira was reported to trade at about ₦1,370 per dollar, indicating a difference between the official and parallel-market rates.
Despite the latest depreciation, Nigeria’s external reserves continued to strengthen. The reserves reportedly rose to approximately US$54,607,000,000, providing additional foreign-exchange resources for the country.
The movement in the official exchange rate follows a period of relative stability for the naira. Earlier in September, the currency had strengthened to levels below ₦1,330 per dollar, its strongest position against the dollar in more than two years.
The CBN has also continued to intervene in the foreign exchange market. Earlier in September, the apex bank sold US$151,000,000 to authorised dealers, with transactions carried out at rates ranging from ₦1,322.71 to ₦1,331.50 per dollar.
Market developments will continue to depend on the balance between dollar supply and demand, as well as foreign reserves, capital inflows, export earnings and other factors affecting Nigeria’s foreign exchange market.
The latest exchange-rate movement is being closely watched by businesses, importers, investors and individuals whose transactions are linked to the dollar, particularly as changes in the value of the naira can affect the cost of imported goods and international payments.
