Naira depreciates slightly to N1,609/$1 at official market amidst sustained FX stability 

This represents a N4 decline from the previous day’s closing rate of N1,605/$1, based on figures published by the Central Bank of Nigeria (CBN).

The continued slide in the exchange rate reflects sustained pressure on the country’s external reserves and a widening demand-supply gap in the foreign exchange market.

This depreciation is occurring despite various interventions by the CBN to stabilize the naira and improve liquidity in the official market.

In the parallel (black) market, the naira also saw further weakening.

It closed at N1,615/$1 on Tuesday, down from N1,605/$1 recorded on Monday. The narrowing gap between the official and unofficial market rates suggests increased speculative activity and persistent challenges in accessing forex through official channels.

Despite the slight depreciation, market analysts continue to highlight the relative stability in the forex market, particularly since the apex bank’s foreign exchange reforms began taking hold.

The convergence of the official and parallel market rates has reduced the level of arbitrage opportunities in the market, a move applauded by investors and credit rating agencies.

Naijaonpoint reports that Fitch Ratings upgraded Nigeria’s outlook to Stable from Negative, highlighting renewed confidence in the Bola Tinubu administration’s commitment to far-reaching policy reforms.

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has reaffirmed the apex bank’s commitment to fostering long-term economic stability, advancing financial inclusion, and ensuring policy transparency as Nigeria intensifies its reform agenda.

He noted that the increasing international interest in Nigeria is both encouraging and a reflection of the country’s growing momentum amid ongoing reforms.