Naira Weakens to N1,488/$ as Analysts See Reserves Hitting $45bn

BY SAMUEL MOBOLAJI

The naira slipped against the U.S. dollar at the official foreign exchange (FX) window on Wednesday, despite a $52 million intervention by the Central Bank of Nigeria (CBN) aimed at calming volatility.

Data from the CBN showed the local currency depreciated by 0.08 per cent to close at N1,488.56 per dollar, compared with N1,487.40 in the previous session. Intraday trading revealed a peak of N1,498 and a low of N1,481, reflecting persistent pressure from dollar demand and limited supply inflows from exporters.

At the parallel market, the naira also weakened to an average of N1,518 per dollar, underscoring the pressure on FX liquidity in the absence of strong foreign investment inflows through open market operations.

Analysts noted that market players continue to rely heavily on the CBN’s intervention sales to meet eligible demand.

Despite the naira’s decline, analysts at TrustBanc maintained an optimistic outlook for Nigeria’s external reserves, projecting they could reach $45 billion by year-end, supported by oil receipts, remittances, and borrowings.

Nigeria’s reserves currently stand at $42.14 billion, the highest in six years and up 13 per cent from July’s $37.18 billion low.

The strengthening reserves, analysts said, boost investor confidence in FX stability and debt cover.

The outlook for the naira remains hinged on oil production, policy clarity, and sustained investor inflows. Meanwhile, in the global commodities market, crude oil prices edged higher as supply concerns in Iraq, Venezuela, and Russia lifted sentiment.

Brent crude rose by 1.4 per cent to $68.57 per barrel, while U.S. West Texas Intermediate (WTI) gained 1.5 per cent to settle at $64.38.