Naira Weakens to N1,369 per Dollar as External Reserves Drop $731 Million Amid FX Pressures

The Nigerian Naira weakened further on Monday, slipping to N1,369 per US dollar, down from N1,361.5/$ recorded at the end of last week. The latest depreciation reflects ongoing pressure in the foreign exchange market, even as global conditions show a softer US dollar. Data released by the Central Bank of Nigeria (CBN) confirmed that the currency’s decline has now extended to its weakest level since early April 2026.

This latest drop also shows a broader trend of gradual weakening, with the naira having opened last week at N1,349.67/$ before sliding further. Market watchers say the movement highlights persistent demand for foreign currency, especially from importers and investors, despite efforts by monetary authorities to stabilize the exchange rate.

At the same time, Nigeria’s external reserves have continued to decline, falling from $49.18 billion on April 1 to $48.44 billion by April 24, a drop of about $731 million within the month. Analysts warn that shrinking reserves could limit the CBN’s ability to intervene in the FX market and support the naira during periods of volatility.

Global market signals offered mixed relief, with the US Dollar Index slipping slightly by 0.3% and Brent crude rising to $106.40 per barrel. However, these external gains have not translated into local currency strength, as Nigeria’s structural FX shortages and liquidity pressures continue to outweigh positive global trends.

While CBN Governor Olayemi Cardoso has downplayed concerns over reserve declines, insisting there is no cause for alarm, investor sentiment remains cautious. The apex bank still projects reserves could rise to $51 billion by the end of 2026, as part of its broader economic stabilization plan, but market confidence will likely depend on sustained inflows and improved FX liquidity in the coming months.

source: nairametrics