Nigerian Naira Weakens Despite Foreign Reserves Surge to 7-Year High

The Nigerian Naira depreciated against the US dollar despite the country's foreign reserves surging to $46.7 billion, the highest level in seven years. The Central Bank of Nigeria (CBN) attributed the rise in reserves to improved economic conditions, increased oil earnings, and higher portfolio inflows, boosting investor confidence.

The CBN aims to stabilize the exchange rate and narrow the gap between the official and parallel market rates. Inflation has decelerated, supporting tighter monetary conditions and improved foreign exchange supply.