NAIRA DEPRECIATES 0.85% TO CLOSE AT N1,381.70 PER DOLLAR

The Nigerian naira weakened by 0.85% against the US dollar in the latest trading session, closing at N1,381.70/$ amid continued pressure in the foreign exchange market.

Dealers reported increased demand for dollars by corporates and individuals, coupled with moderate supply levels, as the main factors behind the depreciation. The parallel market also reflected similar weakness, with rates hovering around higher levels.

Analysts attributed the movement to persistent demand for foreign currency to meet import obligations and other international commitments. Despite efforts by the Central Bank of Nigeria to improve liquidity through various interventions, the naira has faced sustained pressure in recent weeks.

Economic experts noted that while some stability has been observed in previous sessions, structural challenges such as import dependency and lower oil revenue inflows continue to weigh on the currency. They called for accelerated diversification of the economy and improved export earnings to support long-term naira stability.

Market participants expect the Central Bank to maintain close monitoring of the FX market. The latest close brings renewed focus on the effectiveness of current policy measures in achieving exchange rate stability.