Naira Falls to ₦1,605.62 Against Dollar Despite Rise in External Reserves

|By Babatunji Wusu-

-Naira Slips Further as Dollar Demand Tightens FX Market
–Official, Parallel Market Rates Widen Amid Rising External Reserves

Nigeria’s currency, the naira, began the new week on a downward spiral, sliding further against the dollar across both official and parallel foreign exchange markets.

According to data released by the Central Bank of Nigeria (CBN), the naira depreciated to ₦1,605.62 per dollar at the official window on Monday, compared to ₦1,602.18 recorded last Friday — a loss of ₦3.44 in just one day.

On the black market, the situation worsened as the naira fell by ₦5, exchanging at ₦1,610 per dollar, down from ₦1,605 traded at the end of last week.

This steady decline comes even as the apex bank announced an increase in the country’s external reserves, which now stand at $38.8 billion in 2024 — a development typically expected to bolster market confidence.

The continued depreciation has raised fresh concerns among traders, investors, and households already grappling with high inflation and rising import costs.

Analysts believe that while growing reserves indicate a stronger external position, the persistent mismatch between dollar demand and supply continues to pressure the naira across all segments of the FX market.