The Nigerian Naira recorded fresh losses against the United States dollar on Wednesday, extending recent pressure across both the official and parallel foreign exchange markets despite continued growth in the country’s external reserves.
Data released by the Central Bank of Nigeria showed the local currency closed at N1,360.07 per dollar in the official market, compared with N1,357.18 recorded a day earlier.
The latest movement reflects a day-to-day depreciation of N2.89, continuing a mixed trading pattern seen earlier in the week after a brief recovery on Monday and renewed pressure on Tuesday.
The trend was also reflected in the parallel market, where the Naira weakened to N1,400 per dollar from N1,395 in the previous session, representing an additional N5 decline.
The latest depreciation comes even as Nigeria’s external reserves increased further to $50.89 billion as of Tuesday. Rising reserves are often viewed as supportive for foreign exchange stability, although short-term currency movements can still be influenced by market demand and supply conditions.
Recent trading sessions suggest foreign exchange volatility remains a key issue for businesses, importers and households monitoring exchange rate movements for pricing and planning decisions.
Market observers will continue to watch whether stronger reserve levels translate into improved liquidity and support for the local currency in the coming trading sessions.
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