Nigerian Naira Falls Against Major Currencies as Capital Outflows Intensify
The Nigerin naira weakened against the U.S. dollar, euro, and British pound in the foreign exchange market as demand for international payments and cross‑border transaction settlements exceeded available liquidity.
At the official window, the local unit declined 0.07% against the U.S. dollar, closing at N1,332.97 versus N1,332.10 the prior day — a modest retest after intraday valuations of N1,332.09 earlier today.
This depreciation reflects a drawdown in FX liquidity, with Tuesday’s interbank sessions generating transactions between N1,330 and N1,336 in the final hours.
Analysts cite the CBN noting that an intraday peak of N1,336 signals renewed downward pressure on the currency, potentially prompting additional interventions using dollar reserves.
On Wednesday, activity among financial institutions at the National Foreign Exchange Market (NFEM) rose sharply, driven by heightened foreign‑exchange handling requirements.
Interbank FX turnover climbed to $93.16 million — a 157 % increase from $36.24 million yesterday — while deal count grew to 92 transactions compared with 49 in the preceding session.
The parallel market showed the direct rate holding steady at N1,375.00, narrowing the gap with NAFEM from 3.22 % to 3.15 % according to AIICO Capital Limited.
Market participants forecast comparatively stability in the near term, with the naira projected to oscillate within a narrow band amid current liquidity conditions.
Herwood Securities Limited added that market direction will remain shaped by dollar supply and demand dynamics, whereas improved official‑window liquidity could help contain potential volatility.