Naira Slips Further Despite Surge in Nigeria’s Foreign Reserves

|By Babatunji Wusu

The naira lost momentum against the United States dollar on Wednesday, reversing Tuesday’s brief stability at the official foreign exchange window. Data from the Central Bank of Nigeria revealed that the currency declined to N1,447.65 per dollar, weaker than N1,445.39 recorded the previous day, marking a N2.26 slide within 24 hours.

In contrast, the parallel market showed no movement, as the naira held steady at N1,475 per dollar for the second consecutive day.

The renewed dip occurred even as Nigeria’s external reserves continued their upward climb. The CBN figures showed reserves rose to $44.92 billion on December 2, up from $44.67 billion on November 28, reinforcing expectations of stronger liquidity in the near term.

Market analysts say the pressure on the naira persists despite improved foreign inflows, noting that demand outstrips supply in both official and informal FX channels.