Naira slips to N1,565/$ at parallel market
Agency Report
The Nigerian Naira weakened further on Tuesday, falling to N1,565/$1 on the parallel market, marking its lowest point in over a week amid ongoing efforts by the Central Bank of Nigeria (CBN) to stabilise the foreign exchange landscape.
According to data obtained from Lagos-based currency traders, the Naira depreciated from N1,550/$1 recorded on both Monday and Friday, and N1,540/$1 on Thursday.
This marks a concerning trend after the currency showed signs of strengthening late last month, trading at N1,520/$1 on July 25, its strongest level in weeks.
By contrast, the official exchange rate offered a slightly more optimistic picture.
The Naira closed at N1,533.85/$1 on Monday, a marginal improvement from N1,535.50/$1 on Friday, according to data published on the CBN’s official website.
The widening gap between the official and parallel market rates has raised concerns among financial analysts and market observers.
While the CBN continues to project stability, the persistent volatility on the street-level market reflects deeper structural challenges.
Nigeria’s foreign reserves increased by 6.18 per cent month-on-month, rising from $37.2 billion on July 1 to $39.5 billion as of August 1, offering a glimmer of hope.
Analysts say this boost could bolster the Central Bank’s capacity to defend the Naira, finance imports, and meet external obligations.
Dr. Muda Yusuf, Director at the Centre for the Promotion of Private Enterprise (CPPE), hailed the reserve increase as a step in the right direction:
“An uptick in reserves reflects improved oil receipts and possibly more disciplined fiscal management. It gives the CBN some room to support the naira in times of pressure.”
Despite recent market fluctuations, CBN Governor Olayemi Cardoso expressed confidence in the Bank’s forex reforms and broader macroeconomic strategy.
Speaking at the Monetary Policy Committee (MPC) meeting last week, Cardoso said: “The foreign exchange market is working a lot better and more smoothly – the result of which has encouraged inflows into that market.”
He highlighted factors such as increased crude oil production, growth in non-oil exports, and the elimination of fuel subsidies as contributors to the relative stability:
“These measures, painful though they may be, have resulted in stability in the foreign exchange market. There is positivity in our trade surplus, and it has restored investor confidence.”
