The Nigerian naira came under pressure across foreign exchange market segments last week, losing ground despite a steady rise in the country’s external reserves.
Data from the Central Bank of Nigeria (CBN) showed the naira depreciated by N5.08 week-on-week at the Nigerian Foreign Exchange Market (NFEM), closing at N1,363.83 per dollar on Thursday, June 11. This reflects a 0.4% decline from N1,358.75 recorded the previous Thursday.
On a daily basis, the currency weakened by N1.78 from N1,362.05 on Wednesday. Over the four trading days of the week, it shed a total of 99 kobo from Monday’s rate of N1,362.84.
Trading Activity Slows
Interbank market activity declined noticeably. The number of deals dropped by 30.58% week-on-week to 84 transactions on Thursday, down from 121 the previous week. Turnover in the interbank segment also fell sharply by 45.06% to $70.42 million.
In the NFEM window, transaction volumes were relatively steadier. The number of deals reached 332 on Wednesday, compared to 314 deals in the corresponding period the previous week. Total turnover in this segment stood at $607.89 million on June 11.
The latest depreciation highlights ongoing tightness in dollar supply, even as the CBN continues to intervene in the market. Analysts will be monitoring whether improved reserve levels and sustained interventions can help stabilise the naira in the coming sessions.
