Nigeria’s currency continued its downward trend on Tuesday, settling at N1,383 against the US dollar amid sustained pressure in the foreign exchange market and a fresh decline in external reserves.
Data published by the Central Bank of Nigeria shows the naira weakened from N1,369/$ recorded on Monday, highlighting a persistent depreciation pattern in recent trading sessions.
During the day, the currency fluctuated between N1,367.5/$ and N1,385/$, with an average rate of N1,380.19/$.
Tuesday’s closing rate marks the weakest level since early April, underscoring mounting strain on the local currency.
On a week-on-week basis, the naira has also lost ground compared to N1,350.99/$ recorded the previous Tuesday.
The pressure on the naira reflects broader challenges in Nigeria’s FX market, including declining external reserves.
Figures from the apex bank indicate reserves dropped to $48.38 billion as of April 27, down from $48.51 billion on April 21, representing a $124 million decrease within a week. Analysts link this decline to ongoing foreign exchange interventions and external payment obligations.
Globally, the US dollar remained firm as investors anticipated a policy decision from the Federal Reserve, with expectations that interest rates would be held steady. Geopolitical tensions, particularly in the Middle East, have also strengthened demand for safe-haven assets, further supporting the dollar.
Other major currencies showed limited movement, with the euro and British pound trading within narrow ranges, while the Japanese yen hovered near the key 160 level.
Despite intermittent stabilization efforts by monetary authorities, Nigeria’s FX market continues to face headwinds driven by high import demand, constrained dollar inflows, and persistent reserve drawdowns. Market participants have also pointed to continued restrictions on Bureau De Change operators’ access to official FX channels as a contributing factor to supply tightness.
While concerns over dwindling reserves persist, CBN Governor Olayemi Cardoso has downplayed fears, maintaining that the current trend is manageable. The bank remains optimistic, projecting that reserves could rise to $51 billion by the end of 2026 as part of broader economic stabilization efforts.
Overall, the simultaneous weakening of the naira and shrinking reserves highlights ongoing fragility in Nigeria’s external sector, even as global economic dynamics add further pressure.
