Data released by the Central Bank of Nigeria (CBN) revealed that the naira weakened further in the official market, closing at N1,605.62 per dollar on Monday. This represents a decline of N3.44 compared to the rate of N1,602.18 recorded at the close of trading last week Friday.
A similar trend was observed in the parallel market, commonly known as the black market, where the naira depreciated by N5 against the dollar. The exchange rate in this segment of the market moved from N1,605 at the end of last week to N1,610 on Monday.
This continued weakening of the naira occurs despite recent assertions by the apex bank regarding the growth of the nation's external reserves, which reportedly reached $38.8 billion in 2024. The persistent depreciation suggests that factors beyond the level of external reserves are currently exerting significant pressure on the value of the Nigerian currency in the foreign exchange markets.