Naira Depreciates to N1,340/$ at Official Market
The Nigerian naira weakened to N1,340/$ at the official foreign exchange market on Wednesday, down from N1,337/$ on Tuesday, according to Central Bank of Nigeria data. The currency traded within a narrow band of N1,328/$ to N1,340/$ intraday, with a simple average rate of N1,337.17/$. This depreciation mirrored the parallel market rate, which fell to N1,400/$ from N1,382.5/$ the previous day, widening the N60 spread between official and black market rates. The pressure on the naira coincided with a stronger U.S. dollar following Federal Reserve minutes suggesting policymakers may maintain or raise rates if inflation persists. The CBN has implemented reforms to improve liquidity and transparency, with relative stability compared to earlier volatility periods. Improved FX inflows have supported reserve accretion. Governor Olayemi Cardoso emphasized Nigeria's role in advancing Africa's single currency agenda.