The Naira fell to its weakest level in more than a week on the parallel market on Tuesday, trading at N1,565/$1.
This is according to data from currency traders obtained by Naijaonpoint in Lagos.
The latest rate marks a fresh slide from N1,550/$1 recorded on both Monday and Friday, and N1,540/$1 on Thursday.
The Naira had traded at N1,550/$1 last Wednesday, and N1,535/$1 on both Tuesday and Monday of the previous week.
On the official market, the Naira closed at N1,533.85/$1 on Monday, marginally stronger than the N1,535.50/$1 recorded on Friday, according to data on the Central Bank of Nigeria’s (CBN) website.
On July 25, Naijaonpoint reported that the currency closed on a high note in the parallel market, reaching N1,520/$1, making it the strongest performance in weeks.
This rate was N14 stronger than the official rate posted by the CBN, which stood at N1,534/$1.
Nigeria’s foreign reserves rose by 6.18% month-on-month, increasing from $37.2 billion on July 1 to $39.5 billion on August 1.
The development comes as part of ongoing efforts to stabilise the naira and attract foreign investment.
Analysts say the slight increase in reserves bodes well for the economy, as it strengthens the Central Bank’s ability to defend the naira, finance imports, and meet external obligations.
CBN Governor Olayemi Cardoso has consistently reaffirmed the bank’s commitment to a stronger exchange rate.
Speaking at the last MPC meeting, he stated, “The MPC also notes the sustained stability in the foreign exchange market, accentuated by improved capital flows, earnings from increased crude oil production, rising non-oil exports, and significant investments.
“And very importantly, Nigerians are having greater confidence in their own currency”, he added.
He noted further, “The foreign exchange market is working a lot better and more smoothly – the result of which has encouraged inflows into that market.”
“Of course, reference is always being made to the fact that Nigeria has moved away from the very difficult situation where there were subsidies,” he added.
He said further, “These measures, painful though they may be, have resulted in stability in the foreign exchange market. There is positivity in our trade surplus, and it has restored investor confidence.”
He said further, “These measures, painful though they may be, have resulted in stability in the foreign exchange market. There is positivity in our trade surplus, and it has restored investor confidence.”
CBN announced the retention of the Monetary Policy Rate (MPR) at 27.5% at its 301st MPC meeting.
All 12 members of the MPC voted unanimously to maintain the MPR at 27.5%, signaling a unified stance among policymakers amid lingering inflationary pressures and exchange rate volatility.