The Nigerian naira closed the week on a weaker note after posting slight losses against the United States dollar across both the official and parallel foreign exchange markets on Friday, despite the country's growing external reserves.
Data released by the Central Bank of Nigeria (CBN) showed that the local currency depreciated marginally at the official market, closing at N1,370.19/$1 on Friday compared with N1,370.15/$1 recorded on Thursday.
The movement represents a modest decline of N0.04 against the dollar in the official foreign exchange window, extending the day's bearish sentiment in the currency market.
The naira also weakened in the parallel market, where it traded at approximately N1,405 per dollar, representing a N10 depreciation from N1,395/$1 recorded the previous day.
Despite Friday's losses, the local currency still posted a stronger weekly performance at the official market. Compared with last Friday's closing rate of N1,380.93/$1, the naira appreciated by N10.74 over the course of the week, reflecting periods of relative stability in the official foreign exchange window.
The latest depreciation comes even as Nigeria's external reserves continue to climb. According to Central Bank data, the country's foreign reserves rose to $51.46 billion as of June 30, 2026, a development that is generally viewed as supportive of the naira because it strengthens the apex bank's capacity to meet foreign exchange obligations and intervene in the currency market when necessary.
Market analysts, however, note that movements in the exchange rate continue to be influenced by several factors, including demand for foreign currency, market liquidity, investor confidence and broader macroeconomic conditions.
While the naira has recorded periods of appreciation in recent weeks, fluctuations across both the official and parallel markets highlight the continued volatility in Nigeria's foreign exchange landscape as businesses and investors monitor policy measures aimed at sustaining currency stability.