Despite ongoing Central Bank of Nigeria (CBN) interventions and improved forex inflows, analysts warn that external shocks and a stronger U.S. dollar could pressure the naira.
The naira began the week on a weaker note, closing at N1,533.67/$ on the Nigerian Foreign Exchange Market, a 0.08% drop from Friday’s N1,532.51/$. The currency hit an intraday high of N1,535/$ and a low of N1,532/$ before settling at N1,543/$ on the parallel market.
Despite ongoing Central Bank of Nigeria (CBN) interventions and improved forex inflows, analysts warn that external shocks and a stronger U.S. dollar could pressure the naira. Falling crude oil prices also remain a concern. However, Nigeria’s rising oil output has offered some support, with OPEC reporting production at 1.5 million barrels per day in July, exceeding its quota for the second consecutive month.
The IMF praised the CBN’s reforms to expand financial inclusion and capital markets, urging stronger oversight of fintech, lending, and crypto sectors.
Meanwhile, CBN’s Paul Onuoha urged Nigerians to report banks or employees involved in illegally trading new naira notes, warning of insider collusion in currency hawking at social events.