By Seun Ibiyemi
The naira weakened against the United States dollar across foreign exchange segments for the week ended Friday as sustained demand pressures outweighed liquidity support measures.
Data from the official Nigerian Autonomous Foreign Exchange Market (NAFEM) showed that the local currency closed the week at ₦1,363.39 per dollar on Friday, compared to ₦1,359.82 per dollar recorded on Thursday.
The week-on-week movement reflected a modest depreciation of about ₦3.57, as the naira traded within a relatively tight band throughout the trading sessions.
Market participants attributed the marginal decline to increased dollar demand from importers and corporate buyers, despite ongoing liquidity management efforts by the Central Bank of Nigeria (CBN).
The apex bank has continued to intervene periodically to stabilise the market and reduce volatility.
At the parallel market, the naira recorded a steeper decline. The currency closed at approximately ₦1,370 per dollar on Friday, down from around ₦1,340 per dollar at the close of the previous week, representing a ₦30 depreciation over the period under review.
Despite the pressure, the gap between the official and parallel market rates narrowed to about ₦7 by the end of the week, compared to wider spreads observed earlier in the week.
Analysts said the relative convergence indicates improved confidence in the official window, although demand-supply imbalances persist.
Nigeria’s external reserves, reported at about $50.45 billion, provided additional support to the currency during the week, offering the monetary authorities room to sustain intervention strategies where necessary.
Analysts expect the naira to remain sensitive to fluctuations in foreign inflows, global dollar strength and domestic demand conditions in the coming weeks.
