The naira depreciated against the US dollar at the official foreign exchange market on Tuesday, closing at N1,386.65 per dollar, according to Central Bank of Nigeria (CBN) data. This marks a decline from the previous rate of N1,380.79 recorded on Thursday, reflecting a loss of N5.86 in four days. The official window, managed by the CBN, continues to show pressure on the local currency amid persistent demand for dollars. Market analysts attribute the downward trend to limited dollar supply and ongoing structural challenges in Nigeria's foreign exchange system. The weakening rate adds to concerns over inflation and the purchasing power of the naira.
The naira's drop to N1,386.65 against the dollar under CBN watch signals deeper stress in the official forex market. With the currency losing N5.86 in just days, confidence in the central bank's ability to stabilise the exchange rate is thinning. Nigerians are feeling the impact through rising prices of imported goods and services. This latest slide suggests the current forex framework may be struggling to balance supply and demand.
