Nigeria’s currency weakened to N1,389 against the dollar following a sharp decline in the country’s external reserves, which dropped by approximately $850 million within a three-week period.
Data released by the Central Bank of Nigeria (CBN) shows that the pressure on reserves has begun to reflect in the foreign exchange market, reversing earlier gains recorded by the naira.
During intraday trading, the currency moved within a band of N1,381/$ to N1,390/$, settling at an average of N1,386.3/$. This indicates sustained demand pressure in the FX market.
Further data revealed that interbank turnover stood at 48.65 million, across 71 recorded deals, highlighting continued activity despite market volatility.
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The reserve position declined to $49.18 billion between March 11 and early April, reinforcing concerns over Nigeria’s external buffer amid global uncertainties.
Analysts link the development partly to shifting global currency dynamics, driven by geopolitical developments involving the United States and Iran. The announcement of a temporary ceasefire by Donald Trump triggered a broader weakening of the U.S. dollar, even as other major currencies strengthened.
The Japanese yen appreciated by 0.7% to 158.50 per dollar, while the euro rose to $1.1677. The British pound gained 0.8% to $1.3403, with the Australian and New Zealand dollars also posting notable increases.
Meanwhile, the U.S. dollar index declined to 98.943, marking its lowest level since mid-March and extending a three-day losing streak.
Despite the global dollar softness, domestic pressures—particularly declining reserves—continue to weigh on the naira, underscoring the fragility of Nigeria’s FX position.
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