Nigerian Naira falls to ₦1,465.68 per dollar after days of gains, as rising forex demand pressures the market despite improving external reserves

Nigerian Naira closed the week on a disappointing note on Friday, sliding against the US dollar after four consecutive days of positive performance at the official market.

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Data from the Central Bank of Nigeria (CBN) showed that the naira depreciated to ₦1,465.68 per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), down from ₦1,455.25 recorded the previous day.

The ₦10.43 drop underscores renewed pressure on the local currency following a brief recovery streak.

Earlier in the week, the Nigerian Naira had gained steadily amid stronger dollar supply and growing investor confidence. However, analysts say a late surge in forex demand from importers and corporate buyers likely reversed those gains toward the weekend.

At the parallel market, the exchange rate remained unchanged at ₦1,485 per dollar on both Thursday and Friday, suggesting traders are adopting a cautious, wait-and-see approach as they assess the impact of recent CBN policy adjustments.

Despite Friday’s decline, the naira still posted a slight weekly improvement, appreciating by ₦14.98 from the ₦1,480.66 recorded on September 27, 2025.

In a more positive development, Nigeria’s external reserves rose to $42.40 billion as of October 2, up from $42.33 billion three days earlier.

Analysts interpret this steady rise as a sign of improving foreign inflows and potential support for market stability in the coming weeks.

Experts have continued to urge the CBN to maintain its monetary tightening measures and enhance transparency in the forex market to restore investor confidence.

They also stress the need to boost local production and reduce import dependency key factors behind persistent dollar demand.

Also read: Naira Strengthens to N1,500/$ as Reserves Hit $41.6bn

While the week ended with a setback, economists remain cautiously optimistic that the Nigerian Naira could regain strength if reforms are sustained and foreign inflows continue to improve.