Naira Edges Down to N1,383.5 per USD on Tuesday

The Nigerian naira experienced marginal depreciation against the U.S. dollar in the official foreign exchange market on Tuesday, closing at N1,383.5 per dollar, down slightly from N1,383 the previous session. This movement, reported by the Central Bank of Nigeria, occurred amid ongoing pressures from declining external reserves and cautious global sentiment, with the currency trading within a narrow range of N1,372 to N1,389 during the day.

The subtle weakening followed a sharper drop on Monday, when the naira fell to N1,388.38 per dollar after trading resumed following the Eidul-Fitr holiday break. That session marked a reversal from the pre-holiday rate of N1,353.90, reflecting renewed demand for dollars driven by imports and business needs. By Wednesday, early trading showed signs of recovery, with the naira appreciating to around N1,375.61 by midmorning, supported by increased dollar inflows from exporters meeting month-end obligations. Overall, interbank turnover reached 83.44 million dollars across 88 deals, indicating moderate liquidity in the Nigerian Foreign Exchange Market.

A key factor contributing to the volatility is the steady decline in Nigeria's external...