Naira slides to N1,369/$ as FX pressures persist despite weaker global Dollar

The naira continued its downward trend on Monday, depreciating to N1,369 per dollar in the official foreign exchange market, compared to N1,361.5/$ recorded at the close of trading on Friday.

Data published on the website of the Central Bank of Nigeria (CBN) showed that the latest depreciation marks the currency’s weakest performance since April 8, 2026, when it previously traded at a similar level.

The development extends a recent losing streak for the local currency, which had opened last week at N1,349.67/$ before gradually weakening in subsequent sessions.

Despite a softer US dollar in global markets, analysts say domestic structural challenges continue to weigh heavily on the naira, overshadowing any potential relief from international currency movements.

Market watchers attribute the pressure to sustained foreign exchange demand from importers, investors, and corporates, combined with limited FX supply in the official window. Concerns have also persisted over declining external reserves, which play a critical role in supporting market stability through CBN interventions.

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External reserves are widely seen as a buffer that helps the central bank manage volatility and sustain confidence in the naira. However, continued drawdowns have raised questions about how long the apex bank can maintain its intervention strategy without stronger inflows.

CBN Governor Olayemi Cardoso has, however, sought to downplay concerns over recent reserve movements, insisting that the trend should not be interpreted as a signal of instability.

Ordinarily, a weaker US dollar would provide some relief to emerging market currencies, but Nigeria’s FX market continues to be driven more by local constraints than external factors. Analysts note that persistent liquidity shortages and unmet demand remain key drivers of exchange rate pressure.

The naira’s latest depreciation follows earlier movements last week, when it slipped from N1,342.5/$ to N1,349/$ before the current decline.

Despite ongoing volatility, the CBN maintains an optimistic medium-term outlook for the economy’s external position. The bank has projected that external reserves could rise to about $51 billion by the end of 2026, supported by improved inflows and broader macroeconomic reforms aimed at strengthening balance-of-payments stability.

For now, however, traders and analysts remain focused on whether sustained FX demand and reserve pressures will continue to shape the naira’s trajectory in the coming weeks.