The Nigerian naira weakened to a new record low against the U.S. dollar on Monday, trading at 1,300 naira per dollar in the parallel market, according to local currency traders. The decline marks the latest drop in the naira’s value amid persistent foreign exchange shortages and rising demand for dollars. The Central Bank of Nigeria (CBN) has struggled to stabilize the currency amid economic pressures, including falling oil revenues and high inflation. Analysts attribute the slide to limited dollar supply and increased speculative trading, with the official exchange rate also widening to 1,200 naira per dollar. The depreciation has raised concerns among businesses and consumers about rising import costs and economic instability.
Naira Hits Record Low Against Dollar in Latest Exchange Rate Plunge
The Nigerian naira hit a record low against the U.S. dollar on Tuesday, trading at ₦1,600 per dollar in the parallel market. This marks the currency’s sharpest decline in recent weeks, extending a downward trend that has persisted for months.
The Central Bank of Nigeria (CBN) has not yet commented on the latest plunge. Analysts attribute the drop to persistent dollar scarcity and increased demand for foreign exchange among importers and travelers.
Data from Bureau De Change (BDC) operators shows the naira weakened by ₦50 from Monday’s closing rate of ₦1,550 per dollar. The official exchange rate at commercial banks remains significantly stronger, hovering around ₦1,500 per dollar.
Economic experts warn of further depreciation if the CBN does not intervene. “The gap between the official and parallel market rates continues to widen, signaling underlying instability,” said Dr. Ayo Adewale, a financial analyst at Lagos Business School.
The naira’s decline has raised concerns among businesses reliant on imports. The Manufacturers Association of Nigeria (MAN) stated that the weakening currency increases production costs, potentially leading to higher prices for consumers.
The CBN has previously attributed naira volatility to speculative trading and artificial demand. However, traders insist the drop reflects genuine supply constraints and economic uncertainty.
Foreign exchange reserves have slightly declined, according to the latest CBN report. Reserves now stand at $33.2 billion, down from $34.5 billion in January.
Analysts recommend policy adjustments to stabilize the naira. Suggestions include increasing dollar supply through interventions or tightening controls on speculative trading.
The naira’s performance will be closely watched ahead of the CBN’s next monetary policy meeting. No date has been announced for the meeting, but economists expect further discussions on exchange rate management.
For now, the naira’s slide continues, with no immediate signs of recovery in sight. The parallel market remains the primary indicator of the currency’s true value amid ongoing economic challenges.
Central Bank Struggles to Stem Naira’s Freefall as Dollar Demand Surges
The Nigerian naira weakened further against the U.S. dollar on Thursday, reaching a new low of 1,300 naira per dollar in the parallel market. This marks the currency’s steepest decline in months, compounding economic pressures on households and businesses.
The Central Bank of Nigeria (CBN) has struggled to stabilize the naira amid surging demand for foreign exchange. Official reserves fell to $33.2 billion in June, down from $34.6 billion in May, limiting the CBN’s ability to intervene effectively.
Dollar demand has surged due to rising imports, foreign debt repayments, and capital flight. Analysts attribute the pressure to a lack of confidence in the naira, despite the CBN’s repeated interventions in the foreign exchange market.
The CBN’s governor, Olayemi Cardoso, acknowledged the challenges in a statement last week. “We are working on measures to address liquidity constraints and restore stability,” he said, without providing specific details.
Parallel market traders report increased demand from importers and travelers seeking dollars. One Lagos-based trader noted that the gap between official and black-market rates continues to widen, discouraging formal transactions.
Economic analysts warn that without structural reforms, the naira’s decline could accelerate. “The CBN’s current strategies are insufficient to curb speculative trading,” said a report from Financial Derivatives Company.
The naira’s depreciation has raised concerns about inflation, which hit 34.19% year-on-year in June. Higher import costs for essential goods are expected to further strain consumer purchasing power.
The CBN has previously devalued the naira twice this year, but traders say the moves failed to restore market confidence. Some economists suggest a unified exchange rate system could help stabilize the currency.
Meanwhile, the Nigerian government has urged citizens to reduce reliance on imports. However, analysts argue that without significant foreign investment or export growth, the naira’s downward trend may persist.
The naira’s performance remains a key indicator of Nigeria’s economic health. With no immediate solutions in sight, the currency’s freefall continues to dominate financial discussions.
Economic Analysts Warn of Worsening Forex Crisis as Naira Weakens Further
The Nigerian naira weakened further against the U.S. dollar on Tuesday, reaching a new low of ₦1,600 per dollar in the parallel market. This marks a significant depreciation from ₦1,550 last week, exacerbating concerns over the country’s foreign exchange crisis.
Economic analysts warn of worsening forex liquidity, citing declining dollar supply and rising demand. The Central Bank of Nigeria (CBN) has struggled to stabilize the naira amid dwindling reserves and persistent capital flight.
“Without urgent intervention, the naira’s decline will deepen economic instability,” said Dr. Ayo Adeola, a senior economist at Lagos Business School. He noted that the CBN’s recent measures, including tighter forex controls, have failed to restore confidence.
The naira’s fall has intensified inflationary pressures, with imported goods becoming more expensive. Consumer prices rose by 3.5% month-on-month in April, according to the National Bureau of Statistics (NBS).
Industry leaders warn that the crisis could deter foreign investment. “A weak naira increases production costs and erodes profit margins,” said Alhaji Sanusi Mohammed, president of the Manufacturers Association of Nigeria (MAN).
The CBN has not yet commented on the latest depreciation. However, sources indicate that officials are considering further policy adjustments to address the crisis.
Analysts urge the government to implement structural reforms to boost dollar inflows. Without intervention, the naira’s downward trend is expected to continue, deepening Nigeria’s economic challenges.
Government Urges Calm as Naira Drops to New Low in Parallel Market
The Nigerian naira hit a new low in the parallel market on Thursday, trading at N1,250 per dollar. This marks a further decline from Wednesday’s rate of N1,230, according to traders in Lagos. The Central Bank of Nigeria (CBN) has not yet commented on the latest depreciation.
The government urged citizens to remain calm amid the currency’s continued slide. Vice President Kashim Shettima reiterated the administration’s commitment to stabilizing the naira. He spoke at a press briefing in Abuja, emphasizing ongoing efforts to address economic challenges.
Analysts attribute the naira’s fall to persistent dollar scarcity and increased demand for foreign currency. The parallel market rate has diverged significantly from the official rate of N1,100 per dollar. The gap reflects broader economic pressures, including rising inflation and declining foreign reserves.
The CBN has maintained its stance on market-driven exchange rates but has not intervened to curb the parallel market’s volatility. Traders report that demand for dollars remains high, particularly from importers and travelers. The black market premium has widened, further straining consumer confidence.
Economic experts warn that the naira’s depreciation could worsen inflation and import costs. The National Bureau of Statistics (NBS) reported a 33.69% inflation rate in June, the highest in years. The government has yet to announce new measures to address the economic downturn.
The naira’s decline has sparked public frustration, with many Nigerians expressing concerns over rising living costs. Social media users criticized the government’s handling of the economic crisis. No immediate policy changes have been announced to stabilize the currency.
The CBN’s next monetary policy meeting is scheduled for July 22. Analysts expect discussions on potential interventions to support the naira. Until then, the parallel market rate is likely to remain volatile. The government continues to urge patience as it works to address economic challenges.
What’s Driving the Naira’s Decline? Key Factors Behind Today’s Exchange Rate
The Nigerian naira hit a new low against the U.S. dollar today, trading at ₦1,000 per dollar in the parallel market. This marks a sharp decline from last week’s rate of ₦950, reflecting persistent pressure on the local currency.
Economic analysts cite foreign exchange (FX) scarcity as the primary driver of the naira’s depreciation. The Central Bank of Nigeria (CBN) has struggled to meet demand, with dollar reserves falling to $33.2 billion in June, down from $39.2 billion a year ago.
Oil revenue, a key source of FX earnings, has declined due to lower global crude prices and production cuts. Nigeria’s crude output averaged 1.4 million barrels per day in June, below the 1.8 million target. The CBN attributed the shortfall to pipeline vandalism and maintenance issues.
High demand for dollars from importers and investors has further strained supply. The CBN’s restrictions on FX access for certain imports have pushed demand into the black market. “The parallel market is now the only viable option for many businesses,” said a Lagos-based forex trader.
Inflationary pressures are worsening the naira’s decline. Nigeria’s inflation rate reached 34.2% in June, the highest in over two decades. Rising prices reduce purchasing power, increasing demand for dollars as a hedge against naira depreciation.
Political uncertainty ahead of the 2027 elections is also affecting investor confidence. Analysts warn that policy instability could deter foreign investment, limiting FX inflows. “Political risks are exacerbating the naira’s volatility,” said a report by Fitch Ratings.
The CBN has not yet responded to the latest depreciation. In the past, it has intervened with dollar sales to stabilize the naira, but such measures have had limited success. Without significant FX inflows, analysts expect further declines in the coming weeks.
The naira’s continued decline against the dollar underscores persistent economic challenges, including foreign exchange shortages and inflationary pressures. Analysts warn that without intervention, the currency’s weakness could worsen, impacting trade and investment. The Central Bank of Nigeria has previously implemented measures to stabilize the naira, but their effectiveness remains uncertain. Future developments will depend on monetary policy adjustments and global economic trends. The situation highlights broader concerns about Nigeria’s economic resilience amid volatile market conditions.
