Naira Posts Marginal Decline in Official Foreign Exchange Market

The naira ended the trading week with a slight depreciation against the United States dollar at the official foreign exchange market, according to figures released by the Central Bank of Nigeria (CBN).

Data published by the apex bank showed that the local currency closed Friday's trading session at N1,380.93/$, representing a loss of 82 kobo compared with N1,380.10/$ recorded on Thursday. The movement reflected a marginal 0.05 per cent decline in the official exchange rate.

Despite Friday's slight setback, the naira began the week on a stronger footing, opening at N1,369.10/$ on Monday before weakening to N1,370.63/$ on Tuesday. The currency continued its downward movement on Wednesday, closing at N1,380.07/$, before ending the week with another modest decline.

The latest performance highlights the continued fluctuations in Nigeria's foreign exchange market as monetary authorities seek to maintain stability amid changing market conditions. Analysts say movements in the official market remain influenced by foreign exchange liquidity, demand for the US dollar, and broader economic factors.

The CBN has continued to implement measures aimed at improving transparency and efficiency in the foreign exchange market, with investors and businesses closely monitoring exchange rate movements due to their impact on imports, inflation, and overall economic activity.