The naira closed last week on a downward trend, slipping by 0.99 per cent at the official Nigerian Foreign Exchange Market to settle at ₦1,456.72 per dollar on Friday, compared to ₦1,442.43 per dollar recorded the previous week. At the parallel market, the currency also lost ground, trading between ₦1,470/$ and ₦1,475/$.
In its weekly FX market review, Cowry Assets Management Limited reported that the naira traded within a noticeably wider band at the official window, fluctuating between ₦1,440 and ₦1,460, as reduced dollar inflows collided with stronger demand. By week’s end, the currency had weakened by 0.98 per cent, closing at ₦1,456.72/$. A similar pattern appeared in the black market, where the naira dipped by 0.20 per cent to ₦1,475/$.
AIICO Capital also observed bearish momentum throughout the week, noting that early and persistent demand from investors seeking to cover positions kept pressure on the local currency. Despite several interventions by the Central Bank of Nigeria, heightened demand continued to drag the exchange rate lower.
However, the FX market displayed mixed signals overall, as Nigeria’s external reserves maintained a steady rise. CBN data showed reserves climbing from $43.64bn on November 14 to $44.19bn by Thursday—an increase of 1.26 per cent in just a few days.
Cowry Assets attributed the reserve accretion to stable oil revenue, stronger non-oil inflows, and a sustained trade surplus, noting that these factors have helped the CBN maintain liquidity support and moderate overall market volatility.
