The naira ended a shortened trading week nearly unchanged in the official market, closing at N1,380.79 per dollar on Thursday, according to Central Bank of Nigeria (CBN) data. This marked a slight weekly gain of N3.09, or 0.22 percent, from the previous week's close of N1,383.88, despite a day-on-day depreciation of N2.09 from Wednesday's N1,378.70. Over four trading days, the currency strengthened marginally by N2.79 from its Monday opening level. In the parallel market, the naira held at around N1,410 per dollar, narrowing the gap with the official rate to about N30. External reserves fell for the 13th consecutive session, dropping $840 million to $49.18 billion as of April 1 from $50.02 billion on March 11. Analysts attribute the drawdown to heightened global risk aversion, particularly due to Middle East tensions, and reduced reinvestment in money market instruments. FMDA estimates the CBN sold approximately $700 million in early March to stabilise the market. Crude oil prices have risen, but weaker production and increased domestic crude allocation to refineries have limited foreign-exchange inflows. The CBN maintains that reserve fluctuations are part of routine operations and not indicative of systemic weakness.
Thirteen straight days of reserve depletion while the naira barely moves suggests the Central Bank is spending heavily just to maintain the illusion of stability. If the CBN is selling $700 million in a fortnight to hold the line, Nigeria's foreign-exchange buffer may be under more strain than officials admit. This level of intervention is unsustainable if global risk conditions worsen or oil revenues don't improve. For Nigerians, it means the naira's calm could be bought at the expense of future resilience.
