The Nigerian naira slipped further on Monday, trading at N1,349 to the US dollar, compared to N1,342.5 recorded at the close of trading on Friday, according to data from the Central Bank of Nigeria (CBN). The latest movement highlights ongoing pressure in Nigeria’s foreign exchange market despite mixed global currency trends.
Interestingly, the naira’s weakness came at a time when the US dollar itself was losing ground against other major global currencies. The dollar index fell by 0.39% to 98.07, as investors reacted to renewed optimism around possible peace talks linked to the Iran–US geopolitical tensions. This shift boosted risk appetite in global markets and strengthened currencies like the euro and British pound.
However, Nigeria’s currency moved in the opposite direction. The naira traded within a range of N1,341 to N1,353 during intraday sessions, averaging around N1,349.72. Analysts point to declining external reserves and persistent FX demand pressures as key drivers of the local currency’s underperformance, even as global sentiment improves elsewhere.
On the international front, markets were closely watching developments around the Iran conflict, which has stretched into its eighth week. Reports of possible diplomatic talks in Pakistan, alongside rising tensions following the seizure of an Iranian cargo ship by the United States, have kept investors cautious. Oil prices also surged by over 5% due to supply concerns linked to the Strait of Hormuz, adding further volatility to global markets.
Meanwhile, Nigeria’s external reserves continue to face steady declines, falling to $48.6 billion as of April 17, 2026—about $1.38 billion lower over five weeks. Despite this, the Central Bank maintains that the situation remains manageable, projecting reserves could rise to $51 billion by the end of the year as part of its broader economic stabilisation efforts aimed at strengthening investor confidence and FX market stability.
source: nairametrics