Nigerian Naira Weakens Against US Dollar Despite Rise in FX Reserves

The Nigerian Naira started the week on a low note against the US Dollar despite a rise in foreign exchange reserves. The currency faced pressure from increased demand in the foreign exchange market ahead of the festive season.

The Naira closed at N1,442.43 to the Dollar, showing a decline compared to the previous rate. Despite the Central Bank of Nigeria's interventions and a steady increase in external reserves, the Naira is expected to face further pressure due to lower crude oil prices.

Analysts project a potential weakening of the Naira to N1,650-N1,700 by mid-2026. David Cowan, an economist at Citibank, highlighted the impact of crude oil prices on the Naira's performance.