The naira started the new trading week on a weaker note, slipping against the United States dollar in both the official and parallel markets.
Fresh data from the Central Bank of Nigeria (CBN) showed that the local currency lost N1.04 in the official Nigerian Foreign Exchange Market (NFEM), while traders reported a drop of N10 in the black market.
The pressure comes despite an improvement in the country’s foreign reserves, raising questions about the strength of supply and intervention by the apex bank.
Black Market Exchange Rates
Bureau de Change (BDC) operators confirmed that the dollar gained against the naira in the parallel market on Monday, August 19.
Abdullahi, a Lagos-based trader, told GoldenNewsNg.com:
“The dollar buying rate moved from N1,542 to N1,554, while the selling rate rose from N1,550 to N1,563. The euro buying rate changed from N1,780 to N1,775, while the selling rate declined slightly from N1,795 to N1,790. The British pound buying rate increased from N2,070 to N2,075, while the selling rate dropped from N2,090 to N2,085.”
Official Market Figures
In the official market, CBN data showed the naira closed at N1,533.77/$1, weakening by 0.07% compared with Friday’s closing rate of N1,532.73/$1.
Against other major currencies:
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Pound Sterling: N2,076.89/£1 (appreciated by N1.50)
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Euro: N1,791.36/€1 (lost N1.11)
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CFA: N2.73
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Yuan/Renminbi: N213.57
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Danish Krone: N239.82
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Yen: N10.38
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Riyal: N408.72
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South African Rand: N87.04
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SDR: N2,100.06
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Swiss Franc: N1,898.11
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WAUA: N2,097.74
Why the Naira Remains Under Pressure
Analysts noted that the Central Bank of Nigeria did not make direct interventions in the FX market last week, despite rising reserves. The expectation is that improved liquidity could lead to some support in coming days, but for now, pressure on the naira persists.
