CBN Releases New Price to Buy, Sell Dollars as Naira Depreciates to N1,348
- Naira trading reached ₦1,349.50 per dollar, despite a slight improvement in the CBN’s official closing rate
- FX turnover fell 15.15% as dollar demand and foreign investor profit-taking weighed on market activity
- Nigeria’s reserves dropped for a fifth straight day to $55.149 billion, raising questions about the naira’s recovery
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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 naira came under renewed pressure against the United States dollar on Wednesday as foreign exchange demand outpaced available supply, raising concerns about the sustainability of its recent recovery.
Trading data from the Central Bank of Nigeria (CBN) showed that the local currency experienced fresh volatility in the Nigerian Foreign Exchange Market (NFEM), with transactions reaching ₦1,349.50 per dollar during the session.
Source: Getty Images
The development followed a period of relative stability supported by the apex bank's interventions to improve dollar liquidity and ease pressure on the domestic currency.
CBN releases latest dollar exchange rates
According to CBN data, the official exchange rate stood at ₦1,345.7983 per dollar, compared with ₦1,346.9348 recorded in the previous session.
This represented a marginal appreciation of approximately ₦1.14, despite the broader pressure witnessed during trading.
The naira traded between ₦1,346 and ₦1,349.50 per dollar, reflecting continued demand from importers, businesses and other participants seeking foreign currency for international payments.
Although the official closing rate improved slightly, the upper trading range highlighted the challenges facing the local currency.
Dollar transactions decline as market slows
Activity in Nigeria's interbank foreign exchange market weakened as financial institutions reduced their trading volumes.
Total FX turnover declined by 15.15% to $100.929 million on Wednesday, compared with $118.957 million recorded in the previous session.
Similarly, the number of completed transactions dropped to 97 from 117 on Tuesday.
The slowdown suggested reduced market participation amid persistent demand for dollars to settle import bills, corporate obligations and other international transactions.
The pressure also followed profit-taking activities by foreign portfolio investors, which contributed to fluctuations in dollar availability.
Nigeria's foreign reserves record fifth decline
Meanwhile, Nigeria's external reserves continued their downward movement for the fifth consecutive day.
CBN figures placed gross foreign reserves at $55.149 billion, down from a recent peak of $55.264 billion, according to Market Forces Africa.
The difference represents a decline of approximately $115 million.
Despite the reduction, expectations of additional foreign currency inflows, particularly from crude oil earnings, could provide support for the naira.
The apex bank had previously injected approximately $1 billion into the foreign exchange market to address liquidity shortages and stabilise the currency.
Source: Getty Images
What the latest exchange rate means for Nigerians
For Nigerian businesses dependent on imported goods, persistent exchange rate volatility could complicate pricing decisions and increase uncertainty around replacement costs.
Importers, manufacturers and consumers will therefore be watching whether improved dollar inflows can sustain the naira's recovery.
Meanwhile, the US Dollar Index declined by 0.43% to approximately 101.40, reflecting broader weakness in the American currency against major international peers.
Naira reverses gains in the official window
Legit.ng earlier reported that Data from the Nigerian Foreign Exchange Market (NFEM) showed that the local currency weakened to approximately N1,346 per dollar on October 30, compared with N1,329.50 at the end of September.
The development represents a depreciation of N16.50 and marks a setback for the currency, which had strengthened considerably between July and September.
Source: Legit.ng
