Naira Begins New Week With Losses Against USD as Reserves Decline for 14 Straight Days
- The Nigerian naira slips under pressure against the US dollar, indicating continued foreign exchange volatility
- The naira's stability in the parallel market narrows the gap with official rates to about N30
- Nigeria’s external reserves decline raises concerns about foreign exchange buffers amidst global uncertainties
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigerian currency began the new trading week under pressure, slipping against the US dollar despite showing signs of stability in the previous week.
Data from the Central Bank of Nigeria indicates that the naira recorded mixed movements, highlighting persistent volatility in the foreign exchange market.
Source: Getty Images
At the close of the last trading session before the Easter break, the naira appreciated slightly by N3.09 to N1,380.79 per dollar, compared to N1,383.88 a week earlier.
However, on a day-to-day basis, it weakened by N2.09 from Wednesday’s rate of N1,378.70, reflecting ongoing fluctuations.
According to a BusinessDay report, across the shortened four-day trading week, the currency posted only a marginal gain of about 0.2 per cent, suggesting relative stability but no strong recovery momentum.
Parallel market holds steady
In the parallel market, the naira remained largely stable at around N1,410 per dollar. This stability helped narrow the gap between the official and street exchange rates to about N30, down slightly from N32 recorded earlier.
Every week, the currency strengthened modestly by N2, while over the four days it improved by about N5, indicating mild gains outside the official window.
Reserves decline deepens concerns
Nigeria’s external reserves continued their downward trend, falling for the 14th consecutive day. The reserves dropped by approximately $840 million to $49.18 billion as of April 1, down from $50.02 billion recorded in mid-March.
The sustained decline has raised concerns about the country’s foreign exchange buffers, especially as reserves play a key role in supporting the naira and funding external obligations.
Analysts attribute the drop partly to increased interventions by the apex bank, including an estimated $700 million in forex sales in early March aimed at stabilising the market.
Global pressures, local constraints
Despite rising crude oil prices, Nigeria has not fully benefited from improved earnings. Lower oil production levels and increased allocation of crude to domestic refineries have limited foreign exchange inflows.
At the same time, global uncertainties—particularly tensions involving the United States and Iran—have dampened investor appetite for emerging and frontier markets like Nigeria.
Reduced participation in Open Market Operations has also contributed to the pressure. With more funds maturing than being reinvested, some foreign investors have reportedly converted naira holdings into dollars and exited the market.
CBN maintains intervention strategy
The Central Bank insists that fluctuations in reserves are part of routine market operations and not necessarily a sign of weakness. It reaffirmed its commitment to intervening when necessary to stabilise the naira and ensure orderly market conditions.
Still, with reserves declining and external pressures persisting, the outlook for the naira remains cautiously uncertain in the near term.
Source: Getty Images
Naira trades at new rate for two weeks
Legit.ng earlier reported that Nigeria’s currency closed the week on a weaker note at the official foreign exchange market, highlighting persistent pressure on the naira despite intermittent daily gains.
Data from the Central Bank of Nigeria shows the naira settled at N1,380.58 per dollar on Friday, representing a weekly depreciation of N21.68 or 1.57 per cent from N1,358.90 recorded the previous week.
Although the naira showed some resilience in daily trading, appreciating by N3.30 from Thursday, March 26, 2026, to Friday, March 27, 2026, the broader trend remained negative.
Source: Legit.ng
