Nigeria’s currency, the Naira, has experienced a significant depreciation, reaching a two-month low against the United States Dollar in the official foreign exchange market. On Wednesday, the Naira weakened to N1,455.38 per dollar, a decline from the N1,454.38 rate observed on Tuesday. This marks a N1 drop against the dollar within a single day.

The Central Bank of Nigeria’s data confirms this downward trend, with the Naira losing N3.517 against the dollar over the past three days of the current week. The current exchange rate of N1,455.38 per dollar is the lowest the Naira has traded at since October 10, 2025. This development raises concerns about the stability of the nation’s currency.

Despite the recent weakening, the parallel market, often referred to as the black market, saw the Naira remain stable. It traded at N1,490 per dollar on Wednesday, mirroring the rate from the previous day. This divergence between the official and parallel market rates can sometimes indicate underlying pressures or differing market dynamics.

The Central Bank of Nigeria has been actively intervening in the foreign exchange market to manage the Naira’s value and ensure stability. These interventions often involve selling dollars from the nation’s reserves to meet demand and curb excessive depreciation. However, the current trend suggests these measures are facing significant headwinds.

Interestingly, this depreciation occurs even as Nigeria’s foreign reserves have shown a positive trend. As of December 9th, the country’s foreign reserves stood at a robust $45.38 billion. Typically, a strong reserve position is expected to bolster a nation’s currency, providing a buffer against external shocks and supporting exchange rate stability.

The sustained decline of the Naira, coupled with the strong foreign reserve figures, presents a complex economic scenario for Nigeria. Analysts are closely monitoring the situation to understand the contributing factors and the potential impact on inflation, trade, and overall economic growth.

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Keywords: Naira, US Dollar, exchange rate, Nigeria currency, foreign exchange market, Naira depreciation, Central Bank of Nigeria, black market exchange rate