Naira weakens as exchange rate hits N1,605/$1 at official market 

This is according to data published on the Central Bank of Nigeria (CBN) website.

This marks a marginal decline from N1,603/$1 recorded on Wednesday and N1,606/$1 on Tuesday, the first trading day after the Easter holidays.

The slide reflects sustained pressure on the naira amid limited dollar supply and rising demand from importers and other market participants.

In the parallel market, also known as the black market, the exchange rate remained under pressure as the naira exchanged at N1,610/$1 on Thursday.

This represents a slight weakening compared to N1,600/$1 on Wednesday but a mild recovery from N1,615/$1 on Tuesday, according to data gathered by Naijaonpoint from market sources.

The growing disparity between the official and parallel market rates — now standing at about N5 — shows persistent inefficiencies in the foreign exchange market, despite several recent interventions by the CBN aimed at enhancing liquidity and transparency.

Analysts suggest the pressure on the naira may persist in the short term as the country continues to grapple with low oil production levels, reduced foreign inflows, and strong dollar demand, especially from businesses settling obligations incurred during the Easter break.

Market watchers are also keenly observing the impact of the CBN’s recent reforms which are designed to stabilize the currency in the medium to long term.

At a forum held this week at the Nasdaq MarketSite in New York, the Governor of the CBN, Olayemi Cardoso, assured international investors that the bank’s ongoing reforms are steadily contributing to macroeconomic stability and restoring confidence in Nigeria’s economy.

To further enhance transparency and foster investor confidence, the CBN introduced the FX Code and the Electronic Foreign Exchange Matching Systems (EFEMS).