MARKET NEWS

The naira on Wednesday depreciated slightly to a 10-day low of N1,443.08 per dollar, extending its losing streak for the third consecutive trading day in the official foreign exchange (FX) market as demand for the greenback increased slightly.

The last time the naira traded below this level was on October 29, 2025, when it closed at N1,444.42 per dollar at the Nigerian Foreign Exchange Market (NFEM).

According to data published by the Central Bank of Nigeria (CBN), the local currency weakened by N4.37, or 0.3 per cent, as the dollar was quoted at N1,443.08 on Wednesday compared with N1,438.71 on Tuesday. Despite the mild depreciation, analysts noted that the market remains relatively stable, supported by sustained liquidity and improved foreign exchange inflows.

In the parallel market, also known as the black market, the naira held steady at N1,455 per dollar, reflecting a narrowing gap between official and street market rates.

Similarly, Guaranty Trust Bank (GTBank)’s rate for international payments on its naira card closed at N1,447 on Wednesday, up slightly from N1,444 per dollar on Tuesday and N1,442 on Monday, indicating consistent alignment with trends in the official market.

Market analysts said the naira’s recent movement reflects mild demand pressures, typical of mid-month transactions, but emphasised that underlying fundamentals remain supportive of currency stability. A report by United Capital noted that FX inflows into Nigeria have continued to improve, both from investments and trade, contributing to the naira’s resilience and gradual appreciation in recent months.

According to the firm’s analysis, the value of the naira has been buoyed by rising dollar supply, narrowing the premium between the parallel and official markets to less than one per cent, down from about seven per cent in January 2025. The report also observed that although the U.S. tariff policy and related uncertainties in April 2025 temporarily affected the currency, the overall risk of significant naira depreciation remains low due to the country’s stable economic outlook.

“More investors are now shifting from dollar-denominated assets to naira investments,” the report stated, adding that the trend reflects renewed confidence in Nigeria’s short-term economic prospects. The convergence of FX rates, improving capital inflows, and consistent policy direction from the CBN have all been cited as key factors sustaining market stability.

Meanwhile, Nigeria’s external reserves have continued to build up steadily, rising to $43.39 billion as of November 11, 2025, compared to $43.36 billion on November 10, according to the latest data from the CBN. The steady growth in reserves has strengthened the country’s external buffers, enhancing the CBN’s ability to support the naira through targeted interventions and confidence-building measures.

Overall, while the naira’s slight depreciation reflects short-term demand pressures, the broader FX market dynamics suggest continued stability, supported by improving dollar inflows, narrowing market differentials, and rising investor confidence in Nigeria’s macroeconomic direction.