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The Naira came under renewed pressure in the foreign exchange market, weakening to N1,355/$ on Thursday amid persistent volatility and declining external reserves.

Data from the Central Bank of Nigeria (CBN) showed the naira had depreciated from N1,348.1/$ recorded on Wednesday.

The latest movement extends a gradual downward trend seen in recent sessions, reflecting both domestic pressures and global market dynamics.

Recent figures indicate a steady depreciation of the naira alongside a marginal decline in Nigeria’s external reserves, pointing to sustained pressure in the foreign exchange market.

The data demonstrates persistent demand pressures and limited supply in the foreign exchange market.

Global developments also played a significant role, as rising geopolitical tensions boosted demand for the U.S. dollar, further weakening emerging market currencies, including the naira.

Emerging market currencies such as the Philippine peso, Malaysian ringgit, and Indian rupee similarly recorded losses.

The current outlook for the naira reflects a complex interplay of domestic and global factors, with analysts highlighting key areas that will determine future stability.

Earlier this week, Nairametrics reported that the Naira depreciated to N1,349/$ on Monday, down from N1,342.5/$ recorded at the close of trading on Friday.

Recently, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, had said that the recent decline in Nigeria’s external reserves should not be a cause for concern.

Cardoso said he is not particularly concerned about the decline in external reserves, but rather about how Nigerians react to minor fluctuations in the figures, which he suggested are often overinterpreted.