Naira Slips for Second Straight Day at Official Market, Ends Tuesday at N1,332.97/$

The naira weakened for a second consecutive day against the dollar at the official foreign exchange market, closing at N1,332.97 on Tuesday, according to data from the Central Bank of Nigeria.

The currency had closed at N1,332.10 on Monday. That puts the day-to-day loss at N0.87 against the dollar.

Parallel market stays flat

At the parallel market, the naira held its ground. It traded at N1,375 per dollar on Tuesday, the same rate recorded the previous day.

That leaves a gap of roughly N42 between the official window and the street rate. The parallel market has now gone two days without movement while the official rate drifts weaker.

External reserves rise to $58.81bn

The mixed movement across the two markets came as the country's external reserves climbed further to $58.81 billion, CBN data showed.

The reserves figure matters because it is the buffer the apex bank draws on to defend the naira at the official window. A rising stock gives the CBN more room to intervene, though the currency still lost ground on Tuesday.

What it means

For importers and businesses sourcing dollars, the effective cost of FX at the official window edged up slightly, while the parallel market offered no relief. Anyone buying at N1,375 per dollar paid the same as they did on Monday.

The two-day slide at the official market follows Monday's depreciation, which was the first leg of the current run.