The naira’s recent winning streak has come to an end as the currency weakened further against the US dollar, dropping to its lowest level in ten days.
The decline, which reflects renewed demand pressure in the foreign exchange market, has sparked discussions about the stability of Nigeria’s currency as mid-month transactions intensify.
According to the Central Bank of Nigeria’s latest data, the naira closed at ₦1,443.08 per dollar on Wednesday, November 12.
This marks a ₦4.37 or 0.3% fall from the previous day’s rate of ₦1,438.71 and represents the third consecutive day of losses in the official market. The last time the naira traded below this level was on October 29, when it ended at ₦1,444.42 per dollar.
Market analysts explained that this mild dip is not unusual, as demand for foreign exchange typically increases in the middle of the month when companies and importers process payments.
Despite the short-term fall, they believe the broader market remains relatively stable, supported by steady inflows and improved investor confidence.
The decline was not limited to the dollar alone. The naira also weakened against other major currencies. It traded at ₦1,910 per pound sterling, down from ₦1,895.65 the previous day, and ₦1,673 per euro, compared to Tuesday’s ₦1,663.24.
Similarly, Guaranty Trust Bank’s (GTBank) naira card rates showed a slight rise, aligning with official market trends, moving from ₦1,442 on Monday to ₦1,447 per dollar on Wednesday.
At the parallel market, the naira dropped by ₦5, selling for around ₦1,460 per dollar, a sign that the gap between official and street rates is narrowing. Analysts attribute this smaller difference to better dollar supply and stronger forex inflows in recent months.
Financial firm United Capital noted that foreign exchange inflows from both trade and investment sources have remained strong, helping the naira maintain resilience.
The company reported that the spread between official and parallel market rates has fallen to below 1%, compared to about 7% in January 2025.
Nigeria’s external reserves have also reached their highest point in seven years, standing at $43.30 billion as of November 5.
This increase boosts the Central Bank’s ability to stabilize the currency amid rising demand for dollars.