Nigeria’s currency came under renewed pressure in the just-concluded week as the naira lost ground against the dollar at the official window, despite sustained interventions by the Central Bank of Nigeria (CBN), aimed at stabilising the foreign exchange (FX) market.
A review of market data for the first week of November reveals that the naira weakened by 1.03 per cent week-on-week to ₦1,436.58/$1 in the official market, the Nigerian Autonomous Foreign Exchange Market (NAFEM).
It, however, appreciated by 2.83 per cent to ₦1,450/$1 in the parallel market, reflecting FX supply support and persistent demand pressures.
The naira had opened the week at ₦1,421.73 against the dollar at the official window (NAFEM) and closed at ₦1,436.58, losing ₦14.85. But in the parallel market, it opened at ₦1,491 to a dollar and closed at ₦1,450, gaining ₦41 in one week.
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On Monday, it exhibited a mixed performance against the dollar, falling 1.02 per cent to close at ₦1,436.34/$1 at the official segment, indicating weakened demand in the official window, while gaining 0.83 per cent to ₦1,479/$1 in the parallel market.
On Tuesday, it appreciated by 0.19 per cent to close at ₦1,433.66/$1 at the official window, while remaining unchanged at ₦1,479/$1 in the parallel market.
It followed the mixed performance against the dollar on Wednesday as it performed on Monday, weakening against the dollar in the official market by 0.34 per cent to close at ₦1,438.49/$1, while in the parallel market, it appreciated by 2.49 per cent to close at ₦1,443/$1.
It reversed the mixed reaction against the dollar on Thursday as it appreciated by 0.12 per cent to close at ₦1,436.74/$1 at the official window, while depreciating by 0.145 per cent to ₦1,445/$1 in the parallel market.
On the last trading day of the week on Friday, the naira also exhibited a mixed performance against the dollar. In the official window, it strengthened marginally by 0.01 per cent to settle at ₦1,436.58/$1, but in the parallel market, it depreciated by 0.34 per cent to ₦1,450/$1, reflecting continued disparity between official and unofficial exchange rate dynamics.
Analysts expect the naira to trade within a narrow band as CBN interventions persist in the coming week, though lingering FX demand and softening oil prices may sustain mild pressure on the currency.
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“With reserves inching higher, short-term stability appears achievable — but global oil dynamics and local liquidity management will remain key
determinants of exchange rate performance in the near term,” Cowry research analysts anticipated.
External reserves inched up by $130m
Meanwhile, Nigeria’s external reserves rose week-on-week to $43.32 billion on Thursday, November 6, from $43.19 billion on Monday, November 3, adding $130 million to the buffer.
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Analysts attribute this to being buoyed by steady oil receipts, stronger non-oil inflows, and a sustained trade surplus that continues to reinforce the CBN’s liquidity backstop.
Crude oil prices, however, extended their decline for a second consecutive week, weighed down by excess supply concerns despite emerging disruptions in Russian oil exports following US sanctions.
Brent crude traded at $63.69 per barrel and West Texas Intermediate (WTI) at $59.73, both sliding from the week’s open, as record volumes of crude in transit and floating storage added to market caution.
Similarly, Nigeria’s Bonny Light fell by 1.48 per cent to about $66.68 per barrel, reflecting soft sentiment across global energy markets.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
