Nigerian Naira depreciation continues as it closes at ₦1,533.74 per dollar. Market volatility and dollar demand pressure the local currency despite CBN efforts

Nigerian Naira depreciation continued modestly this week, as the currency closed at ₦1,533.74 per U.S. dollar on Friday, a 19 kobo loss compared to the ₦1,533.55 rate on Thursday, according to the Central Bank of Nigeria (CBN).

Also read: Naira Gains Slightly at Official Window Amid FX Optimism

The slight weakening reflects ongoing volatility in Nigeria’s foreign exchange market, driven by rising demand for the dollar and limited supply, as well as global economic uncertainties.

Throughout the week, the Naira showed marginal fluctuations:

Monday: ₦1,534.20
Tuesday: ₦1,533.18
Wednesday: ₦1,534.52
Thursday: ₦1,533.55
Friday: ₦1,533.74

Market analysts attribute the depreciation to persistent demand for foreign currency, especially for imports, foreign travel, and tuition payments, amid restricted forex inflows.

In response, the CBN has introduced policies to stabilize the Naira, including:

Boosting liquidity in the official FX market
Cracking down on speculative trading in the parallel market
Tightening oversight on Bureau de Change activities

However, external factors such as fluctuating oil prices and unsteady foreign investment continue to weigh on the Naira’s value.

Also read: Naira Gains Against Dollar, Closes Week Slightly Stronger

With Nigeria battling inflation, trade imbalances, and limited export diversification, economists stress that sustained CBN interventions, along with policies to increase non-oil exports, are essential for long-term stability.