Naira Weakens to N1,550 Against Dollar Amid Increased Demand

The Nigerian naira has taken a hit, weakening to N1,550 against the American dollar in the black market.

The decline comes amid increased demand for the greenback in West Africa’s largest economy.

Despite the Central Bank of Nigeria’s (CBN) ongoing reforms in the Nigerian FX market, the naira opened the week at N1,500 per dollar in the unofficial market and had stayed within that rate for more than two weeks before its recent low.

However, according to CBN data, the Nigerian naira closed at N1,512 per dollar on the official market on Thursday.

This disparity highlights the erratic dynamics of the Nigerian foreign exchange market.

The naira’s volatility has led to uncertainty, making it challenging for international investors to navigate the market.

Foreign investors withdrew N455.62 billion from the Nigerian stock market in 2024, exceeding all inflows and escalating worries about investor confidence.

NGX data showed that foreign transactions totaled N852.03 billion for the year, with outflows contributing 53.47 percent of the total value, while inflows totaled N396.41 billion.

Globally, the US dollar has experienced a slight drop against the Canadian dollar and Mexican peso, following US President Donald Trump’s announcement of another reprieve of duties aimed at Canada and Mexico.

However, currency traders remain cautious after Trump announced plans to impose equal tariffs on all US trading partners on April 2.