Naira weakens as dollar supply dips by 42.08%

The naira fell marginally on Wednesday as dollars were hard to come by at the banks.

The currency shed 0.20 percent as the dollar was quoted at N1,605.72, weaker than the N1,602.43 quoted on Tuesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to data from the FMDQ Securities Exchange.

The naira depreciation followed strong demand for dollars amid shortages as supply dropped by 42.08 percent at the official foreign exchange (FX) on Wednesday.

The daily FX market turnover decreased to $168.98 million on Wednesday from $291.78 million recorded on Tuesday.

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At the parallel market, also known as the black market, the naira steadied at N1,620 per dollar. Some street traders sold the dollar at N1,590 and N1,610/$1 in some areas.

The naira had enjoyed four straight days of gains in the aftermath of a record hike in interest rates by the Central Bank of Nigeria (CBN) but has now declined for two straight days, fanning fears of renewed pressure on the embattled currency.

The Monetary Policy Committee (MPC) raised the MPR by 400 basis points to 22.75 from 18.75 percent last week, the biggest ever. The Cash Reserve Ratio was also raised from 32.5 percent to 45.0 per cent.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.