Naira Weakens to N1,629 per Dollar on Official Market Amid Rising Dollar Demand

Nigeria’s foreign exchange market saw increased pressure on Monday, with the naira dropping to N1,629 per dollar at the official market, a decline from the N1,600/$1 recorded on Friday. This development highlights the ongoing struggles within the country’s currency market as the local currency continues to depreciate against the U.S. dollar.

Despite the Central Bank of Nigeria’s proactive measures to stabilize the naira, including a sale of $124 million at rates between N1,595 and N1,611, the currency’s value continues to decline. The CBN had previously sold $197 million on Friday, signaling its efforts to curb the falling value of the naira.

The weakening of the naira comes amid rising demand for dollars, as well as growing concerns within global financial markets. The recent sharp reactions to new U.S. tariff threats are exacerbating market unease, contributing to a further depreciation of the naira.

Analysts suggest that the sustained depreciation of the naira is a sign of underlying economic pressures and a continued strain on Nigeria’s foreign exchange reserves, indicating that the country’s currency market may face more challenges in the near future.