The naira came under renewed pressure on Wednesday, trading as high as ₦1,349.50 per dollar, even as Nigeria’s external reserves declined for a fifth straight day to $55.149 billion.
Central Bank data showed the official closing rate at ₦1,345.80, a slight improvement of about ₦1.14 from ₦1,346.93 the previous session. During the day, however, the currency moved between ₦1,346 and ₦1,349.50, reflecting strong demand from importers, businesses and others needing dollars for international payments. Demand outpaced supply in the Nigerian Foreign Exchange Market, with profit-taking by foreign portfolio investors adding to the swings.
Trading Activity Cools
Interbank foreign exchange activity weakened. Total FX turnover dropped 15.15% to $100.93 million from $118.96 million the day before. The number of completed deals fell to 97 from 117. Lower volume pointed to thinner participation even as underlying demand for dollars to cover imports and corporate obligations remained firm.
The Central Bank had earlier injected about $1 billion into the market to ease liquidity shortages and support the currency.
Reserves Extend Slide
Gross foreign reserves stood at $55.149 billion, down from a recent high of $55.264 billion a decline of about $115 million. Fresh inflows, especially from crude oil earnings, could still offer some support for the naira if they materialise.
Globally, the US Dollar Index eased 0.43% to around 101.40, signalling broader softness in the greenback against other major currencies.
October had already been difficult for the naira. It weakened to about ₦1,346 by 30 October from ₦1,329.50 at the end of September a loss of roughly ₦16.50 reversing part of the gains built up between July and September.
Impact on Businesses
For companies that rely on imports, ongoing exchange-rate volatility makes pricing and cost planning harder. Replacement costs for goods and materials can shift quickly when the naira moves. Importers, manufacturers and consumers will be watching whether stronger dollar inflows can steady the currency or whether demand will keep pressure on the rate in the sessions ahead.
