The naira experienced a turbulent week, continuing its decline against the dollar and closing at N1,604/$1 on Friday — a 0.75% drop from Thursday’s close of N1,592/$1.
On a week-on-week basis, the naira depreciated by 2.36%. The week began on a shaky note, with the currency opening at N1,612.24/$1, a 2.81% decline from the previous week’s close of N1,567.02/$1.
This also marked the first time in 2025 that the naira breached the N1,600/$1 threshold in the official market.
In response, the Central Bank of Nigeria (CBN) intervened by selling $124 million on Monday at rates between N1,595/$1 and N1,611/$1, followed by another $149.4 million on Tuesday to ease the growing foreign exchange demand pressure.
The apex bank’s efforts yielded good results on Tuesday, with the naira recording a mild appreciation. However, the relief was short-lived, as demand pressure continued and the currency slipped further, hitting a new low of N1,629.94/$1 on Wednesday.
In the parallel market, the naira closed on Friday at N1,608/$1, reflecting a 0.74% appreciation from Thursday’s rate of N1,620/$1.
Against the British pound, the naira weakened by 0.50%, ending the week at N2,030/£1 from N2,020/£1. Similarly, it fell 1.49% against the euro, closing at N1,705/€1, compared to N1,680/€1 the previous day.
Analysts and market operators attributed the sustained pressure on the naira to heightened demand for the dollar, driven by prevailing uncertainty in the global market.
They anticipate that the CBN will intensify its interventions in the coming weeks to stabilise the currency market.
