Naira dips against dollar at official market despite rising reserves

|By Adejumo Adekunle

…currency weakens for the first time in the week
…black market remains unchanged at ₦1,545 per dollar

The Nigerian naira recorded its first decline this week against the United States dollar at the official foreign exchange market on Wednesday, marking a shift from its earlier stability.

Data from the Central Bank of Nigeria (CBN) showed that the naira slipped to ₦1,534.52 per dollar, compared to ₦1,533.18 exchanged on Tuesday. This represents a day-on-day depreciation of ₦1.34.

This is the first time the currency has weakened since Monday, July 28, 2025, breaking a brief streak of stability.

In contrast, the parallel market remained flat. Traders in the black market held firm at ₦1,545 per dollar—the same rate recorded the previous day, suggesting that the pressures at the official market did not spill over into informal trading circles.

The slight dip occurred despite an uptick in Nigeria’s foreign reserves. According to the apex bank, reserves grew to $39.27 billion as of July 29, up from $39.14 billion on July 28. The growth in reserves is typically seen as a buffer for defending the naira, but Wednesday’s figures suggest other market forces may be driving the official rate.

Analysts say the depreciation may reflect renewed demand pressure or a lag in dollar supply to the official window, even as external buffers improve.