Naira Declines Further Against the Dollar in Forex Market Slide

The naira began the week on a downward trend, slipping further against the US dollar in both the official and parallel foreign exchange markets.

According to figures from the Central Bank of Nigeria (CBN), the local currency declined to ₦1,605.62 per dollar on Monday, down from ₦1,602.18 recorded at the close of trading on Friday. This reflects a day-on-day depreciation of ₦3.44.

In the parallel market, often referred to as the black market, the Nigerian currency also lost ground. It was exchanged at ₦1,610 per dollar on Monday, weakening by ₦5 from the ₦1,605 rate seen at the end of last week.

Despite the pressure on the naira, the CBN noted that Nigeria’s external reserves have risen to $38.8 billion in 2024, suggesting a potential buffer to support the currency and stabilise the forex market.