The naira continued its downward trajectory on Tuesday, depreciating to N1,383 per US dollar as renewed pressure in Nigeria’s foreign exchange market coincided with a further decline in the country’s external reserves.
Data published on the Central Bank of Nigeria (CBN) website showed that the local currency weakened from N1,369/$ on Monday to N1,383/$ on Tuesday, extending a recent run of losses in the official market.
During the trading session, the naira fluctuated between N1,367.5/$ and N1,385/$, while the simple average rate settled at N1,380.19/$.
Tuesday’s closing rate represents the weakest level recorded since April 7, 2026, when the currency traded at N1,389/$, underscoring sustained depreciation pressure in recent weeks.
On a week-on-week basis, the naira has also weakened significantly compared to last Tuesday’s close of N1,350.99/$, highlighting continued fragility in the foreign exchange market.
CBN data also indicated a further decline in Nigeria’s external reserves, which fell to $48.38 billion as of April 27, 2026, down from $48.51 billion a week earlier on April 21.
READ ALSO: Naira hits two-month high at N1,341.99/$ amid improved market sentiment
The $124 million drop within seven days reflects ongoing foreign exchange interventions by the monetary authority, alongside external debt servicing and other obligations.
External reserves are a key buffer for currency stability and FX market support, and their continued decline has raised concerns among market observers about the sustainability of intervention efforts.
The naira’s weakness comes amid broader global currency dynamics, where the US dollar maintained a strong position ahead of an anticipated Federal Reserve policy decision.
The dollar index hovered around 98.57, supported by safe-haven demand linked to geopolitical tensions in the Middle East and expectations that US interest rates will remain unchanged in the near term.
Other major currencies traded within narrow ranges, with the euro and British pound relatively stable, while the Japanese yen remained near the psychologically important 160 level.
Nigeria’s foreign exchange market has remained under pressure despite periodic interventions by the Central Bank. Analysts attribute the trend to a combination of strong import demand, limited foreign inflows, and continued reliance on reserves to stabilise the currency.
Restrictions on Bureau De Change (BDC) operators’ access to the official FX market also remain in place, as authorities seek to curb arbitrage and improve transparency in forex allocation.
While the decline in both the naira and external reserves has drawn concern in some quarters, CBN Governor Olayemi Cardoso has previously dismissed fears over reserve depletion, insisting that the trend does not signal immediate instability.
Despite short-term pressures, the CBN has maintained an optimistic outlook for the economy’s external position, projecting that reserves could rise to $51 billion by the end of 2026 as part of its broader macroeconomic stabilisation strategy.