After four consecutive days of gains, the naira closed the week on a slightly negative note at the official foreign exchange market, depreciating against the US dollar on Friday.

According to data from the Central Bank of Nigeria (CBN), the naira fell to ₦1,465.68 per dollar at the end of trading on Friday, down from ₦1,455.25 on Thursday. This represents a ₦10.43 decline on a day-to-day basis, reversing the strong performance recorded a day earlier.

However, at the parallel (black) market, the local currency held steady, maintaining an exchange rate of ₦1,485 per dollar for the second consecutive day.

Despite Friday’s dip, the naira still posted a weekly appreciation of about ₦14.98, compared to ₦1,480.66 per dollar recorded on Friday, September 27, 2025. This suggests that overall, the local currency strengthened slightly week-on-week.

Analysts say the short-term volatility reflects ongoing adjustments in market dynamics amid improved foreign exchange inflows and a gradual rise in Nigeria’s external reserves.

As of October 2, 2025, the country’s external reserves stood at $42.40 billion, up from $42.33 billion on September 29, 2025 — signaling modest but sustained growth in the CBN’s buffer position.

While Friday’s depreciation underscores the fragile stability of the forex market, the broader trend points to cautious optimism, with policymakers banking on stronger reserves and reforms to sustain the naira’s resilience in the weeks ahead.