Momentum in the foreign exchange market slowed on Thursday as the naira recorded its first depreciation against the United States dollar in 2026 at the official window.
Data from the Central Bank of Nigeria (CBN) showed that the local currency weakened slightly to ₦1,419.72 per dollar on Thursday, compared with ₦1,418.26 recorded on Wednesday. The movement represents a day-on-day decline of ₦1.46, marking the first official depreciation of the naira since the start of the year.
The decline at the official market was mirrored in the parallel market, where the naira lost further ground. Currency traders quoted the dollar at ₦1,490 on Thursday, down from ₦1,480 the previous day, indicating a ₦10 depreciation in the black market.
The setback comes after a sustained period of gains for the local currency. Reports indicate that the naira had enjoyed a seven-day bullish run at the official foreign exchange market before Thursday’s reversal, buoyed by improved market sentiment and policy interventions.
The depreciation also occurred despite a continued rise in Nigeria’s external reserves. CBN data showed that foreign reserves climbed to $45.64 billion as of Wednesday, January 7, 2026, underscoring lingering pressures in the FX market even amid stronger reserve buffers.
Market analysts note that while the naira’s performance earlier in the year suggested improving stability, short-term fluctuations remain likely as demand pressures persist across both official and informal currency markets.