Official FX Market Sees Naira Dip to N1,380.93/$1

The naira dipped to N1,380.93 per dollar in the official FX market on Friday, extending a run of mild losses. The slide came as the central bank eased the pace of its forex interventions.

The currency lost 82 kobo, or about 0.06%, from the previous day’s close of N1,380.11/$1.

The day’s moves in the official FX market

The loss was small but pointed in a familiar direction. A slower drip of central-bank dollars left the market leaning weaker.

Other major currencies firmed against the naira too. The pound rose to N1,824.90, up from N1,818.84, while the euro climbed to N1,577.58 from N1,566.84.

At the bank counters, GTBank quoted the dollar at N1,387, up from N1,383 a day earlier. The shifts were modest but consistent.

How the parallel market held

Away from the official window, the street rate stayed steady. The naira traded unchanged at N1,395/$1 in the parallel market.

That stability narrowed the gap between the two markets. A tighter spread is generally read as a healthier sign for the currency.

Still, fluctuating interbank activity kept rates choppy through the session. Traders pointed to uneven dollar flows.

What is driving the slide

Analysts tied the softness to a slowdown in central-bank forex sales. When the Central Bank of Nigeria steps back, demand can outpace supply.

Sustained appetite for dollars, for imports and other payments, keeps the pressure on. The market reacts quickly to any change in official supply.

A currency under steady pressure

The naira has spent much of 2026 trading in a narrow but soft band against the dollar. Small daily losses have become a familiar pattern.

Reforms since 2023 unified the exchange rate and floated the currency more freely. That shift made the official rate more market-driven, and more visible.

With pricing now reflecting supply and demand, central-bank activity matters a great deal. When official dollars slow, the market feels it fast.

What businesses face

Importers watch the official rate closely because it shapes their input costs. A weaker naira raises the price of goods bought in dollars.

Manufacturers that rely on foreign raw materials are especially exposed. Many pass higher costs on to consumers through shelf prices.

For households, the cumulative effect shows up in everyday spending. Even gradual moves in the rate ripple through the cost of living.

Diaspora remittances are another key source of dollars for the economy. Steady inflows from Nigerians abroad can help cushion the currency.

Analysts say confidence is central to stability. When traders trust that supply will hold, pressure on the naira tends to ease.

For now, the market is watching the central bank’s next moves. Its appetite to intervene will shape where the rate settles in the weeks ahead.

Why it matters

The official rate sets the tone for businesses pricing imports and planning budgets. Even small daily moves add up over time.

A weaker naira raises the cost of foreign goods, which can feed into inflation. Households often feel that through higher shelf prices.

For now, the moves remain gradual rather than sharp. But the direction keeps the currency firmly in focus for policymakers and markets alike.

Source: CBN

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