Naira loses ₦27.12 vs dollar in two days despite $55.16bn reserves
The naira crashed ₦27.12 against the dollar in two days at the official market, dropping from ₦1,334.72 on Wednesday to ₦1,361.84 on Friday — a 2.03% depreciation. Week-on-week, the same ₦27.12 loss occurred. At the parallel market, Bureau de Change operators quote ₦1,375/$, a ₦5 weakening that widens the gap between official and street rates to ₦13.16.
This happened despite external reserves sitting at $55.16 billion as of October 22, per CBN data. The divergence suggests reserves alone aren't stabilizing the currency — demand pressure, speculation, or policy gaps are overwhelming supply. Importers, manufacturers, and anyone needing dollars for travel, school fees, or medical bills face higher costs immediately. The parallel market premium signals waning confidence in the official rate.
CBN's next move is the intelligence: will they defend the rate with interventions, adjust policy, or let the market find equilibrium? Previous interventions provided only temporary relief. Businesses pricing in dollars should factor in continued volatility. Individuals with dollar obligations should consider locking rates now if hedging options exist.
With reserves at $55bn but the naira still sliding, will CBN deploy more firepower or accept further depreciation as the new normal?