By Seun Ibiyemi
The Naira closed the trading week on a downward trajectory, depreciating to N1,475.35 per U.S. dollar at the official foreign exchange market on Friday.
Data released by the Central Bank of Nigeria (CBN) confirmed this figure, which represents a 0.29 per cent decline, or a N4.32 loss, from Thursday’s exchange rate of N1,471.02 per dollar.
The latest figure marks the end of a week characterized by mild but steady depreciations across most trading sessions.
The local currency started the week on Monday at N1,457.51 per dollar, then weakened to N1,463.23 on Tuesday, and further slid to N1,473.29 on Wednesday, before reaching its closing rate of N1,475.35 on Friday.
Despite the overall negative performance, the Naira managed a brief rebound on Thursday, appreciating by 0.15 per cent following a string of earlier declines.
Market analysts attributed the currency’s fluctuations primarily to increased demand pressures in the foreign exchange market, combined with persistent limited liquidity inflows. These factors continue to exert significant weight on the Naira’s short-term stability.
Experts noted that while monetary policy efforts by the CBN have been instrumental in moderating volatility in recent months, achieving lasting stability requires sustained foreign exchange supply and a boost in investor confidence.
The Naira’s performance this week underscores the ongoing challenges faced by Nigeria in balancing demand and supply dynamics within its foreign exchange ecosystem, even as the Central Bank maintains its interventions aimed at strengthening liquidity and ensuring orderly market operations.