The Nigerian naira continued its downward trend against the U.S. dollar in the official foreign exchange (FX) market on Tuesday, reflecting ongoing volatility in the country’s currency market.
According to the latest data from the Central Bank of Nigeria (CBN), the naira depreciated to ₦1,536.15 per dollar, marking a further decline from ₦1,530.15 recorded on Monday. This translates to a daily depreciation of ₦6 against the dollar, signaling persistent pressure on the local currency.
This marks the second consecutive day of depreciation in the official market, raising concerns among traders and businesses about the continued instability of the exchange rate. The depreciation trend suggests that demand for the dollar remains high, potentially driven by factors such as speculative trading, reduced FX inflows, or economic uncertainties.
In contrast, the parallel (black) market remained stable, with the naira maintaining an exchange rate of ₦1,580 per dollar on Tuesday, the same rate recorded on Monday. The stability in the unofficial market suggests a temporary balance in demand and supply dynamics outside the official channels.
Market analysts attribute the persistent fluctuations in the official FX market to factors such as monetary policy adjustments, foreign reserves management, and external economic influences. The CBN has been implementing various measures to stabilize the currency, but challenges such as dollar shortages and capital flight continue to exert pressure.
With the naira’s depreciation showing no immediate signs of reversal, stakeholders in Nigeria’s financial sector are closely monitoring the situation, as further weakening could have implications for inflation, import costs, and overall economic stability.
