The naira has depreciated further against the United States dollar in the official foreign exchange market, as fresh demand pressure weighed on the local currency. Data from the Central Bank of Nigeria (CBN) showed that the naira weakened by N5.46 or 0.4% to close at N1,353.91/$1 on Thursday, April 22, compared with the previous day's rate of N1,348.45/$1.
Naira Slips Against Major Currencies
The Nigerian currency also lost ground against other major currencies in the official market. The naira depreciated by N4.13 against the British pound to close at N1,825.88/£1, down from N1,821.75/£1 in the previous session. Against the euro, it dropped by 72 kobo to settle at N1,582.72/€1 from N1,582.00/€1.
However, at the GTBank FX desk, the naira appreciated slightly by N2 during the session to quote at N1,359/$1, compared with the previous closing price. At the parallel market, the exchange rate remained unchanged at N1,375/$1.
Forex Liquidity Constraints
The pressure on the naira was driven by weaker liquidity conditions in the Nigerian Foreign Exchange Market (NAFEM). Data showed that NFEM interbank turnover fell sharply to N28.117 million, down from N66.084 million recorded in the previous session. Concerns over liquidity constraints, policy transparency, and investor confidence continue to weigh on the FX market.
This comes amid a further decline in Nigeria's external reserves, even as the CBN maintains that the drop is not a cause for concern. Global developments also added pressure, as rising geopolitical tensions strengthened demand for the US dollar, further weakening emerging market currencies, including the naira.
CBN New Exchange Rates
The CBN released new exchange rates for various currencies, including: CFA: N2.41, Yuan/Renminbi: N198.08, Danish Krona: N211.76, Yen: N8.49, Riyal: N360.97, South African Rand: N82.05, Swiss Franc: N1,723.19, British Pound Sterling: N1,825.88, US Dollar: N1,353.91, WAUA: N1,849.62, UAE Dirham: N368.58, SDR: N1,859.43, and Euro: N1,582.72.
Foreign Reserves on the Rise
Legit.ng earlier reported that the United States dollar climbed to its highest level in seven days on Monday, April 20, driven by renewed geopolitical tensions between Washington and Tehran that unsettled global financial markets. According to Reuters, investor sentiment turned cautious over the weekend after reports that the US seized an Iranian cargo vessel, further escalating already fragile relations between the two nations. The development sparked a wave of risk aversion, prompting investors to shift capital into traditional safe-haven assets. The dollar benefited from this flight to safety, even as broader currency markets showed mixed signals.
