Market News

Nigeria’s naira closed the week at N1,374 to the US dollar on Thursday, reflecting ongoing pressures in the foreign exchange market.

Central Bank of Nigeria (CBN) data indicates fluctuations across trading sessions: N1,369/$ on Monday, N1,383/$ on Tuesday, N1,370.5/$ on Wednesday, and N1,374/$ on Thursday. Markets were closed Friday for Workers’ Day.

This marks a week-on-week weakening from N1,361.5/$ the prior Friday and N1,355/$ the preceding Thursday. Trading ranged between N1,369/$ and N1,383/$.

Nigeria’s external reserves fell to $48.36 billion as of April 29, down from $48.51 billion on April 21. Traders have attributed the decline to CBN interventions and external obligations, with reserves dropping about $731 million in the first three weeks of April.

Structural factors, including limited access for Bureau De Change operators to the official market, have constrained supply in the retail segment, according to market sources. Global dollar strength—bolstered by the US dollar index at around 98.57 amid Federal Reserve policy anticipation—has added pressure on emerging market currencies like the naira.

CBN Governor Olayemi Cardoso has stated that the bank is equipped to manage reserve fluctuations, projecting reserves could hit $51 billion by year-end as part of stabilisation efforts.

The euro and pound traded in narrow ranges, while the yen hovered near 160 to the dollar, influenced by geopolitical uncertainties.

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