Nigeria's naira hits two‑month low as FX liquidity tightens

The Nigerian naira weakened to a two‑month low against the US dollar in the official foreign‑exchange market, touching N1,392 per dollar before closing around N1,380.08. Traders cited persistent FX liquidity shortages and strong demand for dollars despite a rise in market liquidity and an increase in Nigeria’s external reserves to a 17‑year high of about $51.2 billion.

Interbank turnover at the Nigerian Foreign Exchange Market remained steady, with $125‑$660 million traded across 126‑320 deals in recent sessions. The Central Bank of Nigeria reported that the gap between the official rate and the parallel (black‑market) rate narrowed to roughly N20, with the black‑market rate closing near N1,400 per dollar. The depreciation reflects broader pressure from a strong US dollar and limited CBN interventions over more than six weeks.

Nigeria’s foreign‑exchange reserves rose sharply, up 36 % year‑on‑year, bolstering the CBN’s capacity to support the currency and meet external obligations. However, the sustained slide in the naira underscores ongoing challenges in the country’s balance‑of‑payments and monetary policy landscape.