Nigeria’s currency markets painted a tale of two extremes this week: the naira weakened under heavy buying pressure, while the country’s financial safety net expanded with fresh reserve gains.
Naira’s Rough Week
The local currency took hits on both official and black-market fronts as dollar hunters overwhelmed supply.
- Official rate: Closed Friday at N1,456.72/$1, down from last week’s levels
- Parallel market: Traded around N1,475/$1 after wild swings
Traders blame a rush to lock in positions, which squeezed available dollars despite central bank efforts to stabilize flows.
Reserves Provide a Buffer
In contrast, Nigeria’s foreign exchange war chest swelled to $44.19 billion by Thursday – a 1.26% jump in days.
Key drivers:
- Steady crude oil sales
- Rising non-oil exports
- Robust trade balance
This buildup arms the Central Bank of Nigeria (CBN) with tools to counter volatility long-term.
MPC Meeting Looms Large
All eyes turn to the Monetary Policy Committee (MPC) gathering this week for clues on the next move.
With inflation easing and reserves solid, experts eye a possible rate cut the first easing after months of hikes to signal brighter days ahead.
The naira may be bruised, but Nigeria’s economic story shows resilience beneath the surface.
