The depreciation comes despite the Central Bank of Nigeria (CBN) intervening with $124 million in forex sales on Monday, offering dollars at rates between N1,595 and N1,611. This follows a $197 million sale on Friday, as the apex bank ramps up efforts to stabilise the embattled currency.
However, the naira’s slide points to persistent dollar demand and investor concerns, compounded by global market volatility following new tariff threats from the U.S., which have shaken emerging markets and weakened investor sentiment.
The weakening currency poses a fresh challenge to the CBN’s recent efforts to build market confidence through FX interventions and interest rate hikes, and may fuel inflationary pressures, particularly for import-dependent sectors.
Traders and analysts suggest that without sustained dollar inflows from oil exports or external financing, the naira may face continued headwinds in the short term.
The situation underscores the fragile balance Nigeria faces as it tries to defend the naira, manage rising inflation, and maintain macroeconomic stability amid global uncertainty.