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The naira extended its decline on Tuesday, closing at N1,383 per US dollar as renewed pressure in the foreign exchange market coincided with a further dip in Nigeria’s external reserves.

This is according to data on the Central Bank of Nigeria’s (CBN) website.

The latest movement comes amid a mixed global currency environment, where the US dollar strengthened ahead of a closely watched Federal Reserve policy decision and ongoing geopolitical tensions in the Middle East continued to support safe-haven demand.

CBN figures show the naira weakened from N1,369/$ on Monday to N1,383/$ on Tuesday, marking a continued depreciation trend in recent sessions.

The pressure in the FX market has been mirrored by a decline in external reserves. CBN data shows reserves fell to $48.38 billion as of April 27, 2026, down from $48.51 billion recorded on April 21, 2026.

In the global market, the US dollar held firm as investors awaited the Federal Reserve’s policy decision, widely expected to keep interest rates unchanged. The dollar index steadied around 98.57, supported by safe-haven flows linked to geopolitical uncertainty.

The euro and pound traded in relatively tight ranges, while the Japanese yen remained near the psychologically sensitive 160 level.

Nigeria’s FX market has remained under pressure in recent weeks despite periodic stabilisation efforts by monetary authorities. The combination of persistent import demand, limited FX inflows, and reserve drawdowns continues to weigh on the naira’s performance.

The external reserves, which act as a buffer for currency stability and FX interventions, have seen intermittent declines in April, reinforcing concerns about the sustainability of market support operations.

The simultaneous weakening of the naira and decline in external reserves signal continued fragility in Nigeria’s FX fundamentals, even as global dollar dynamics add external pressure.

Recently, the CBN Governor, Olayemi Cardoso, had dismissed concerns over the recent reserve decline, insisting the trend should not trigger alarm.

Despite the recent dip, the CBN maintains an optimistic outlook for the country’s external reserves.