Naira closes at N1,381.70/$1, loses 0.85% in a week of persistent pressure

The Nigerian naira ended the trading week at its weakest level against the United States dollar, closing at N1,381.70/$1 on Friday, 10 July. This represents a 0.85 per cent week-on-week depreciation, with the local currency dropping N11.70 from the previous Friday's closing rate of N1,370.00/$1.

According to official data from the Central Bank of Nigeria, the naira fell on four of the five trading days. The slide started on Monday, 6 July, with a marginal N1 drop to N1,371.00/$1. Selling pressure intensified on Tuesday, 7 July, pushing the currency down by another N8 to close at N1,379.00/$1.

Mid-week volatility and continued losses

The naira held steady on Wednesday, 8 July, at N1,379.00/$1, but intraday trading was highly volatile. Rates swung between N1,376/$1 and N1,387/$1 during the session. On Thursday, a fractional drop of N0.25 brought the closing rate to N1,379.25/$1. The downward trend ended with a final N2.45 loss on Friday, 10 July, leaving the naira at its lowest point of the week.

Market activity in the Nigerian Foreign Exchange Market showed sharp swings in trading volumes. Total market turnover rose from $220.18m on Monday to a mid-week peak of $504.67m on Wednesday. Liquidity cooled off by Thursday, dropping to $298.92m. Friday's final turnover figures were not reflected in the central bank’s data.

Interbank turnover and CBN intervention efforts

A similar pattern played out in the interbank market. Interbank turnover expanded drastically from $54.18m on Monday to $208.09m on Wednesday, before easing back to close at $71.04m by Friday afternoon. This latest volatility comes amid ongoing efforts by the Yemi Cardoso-led CBN to stabilise the foreign exchange market through interest rate hikes and the clearance of verified FX backlogs.

The apex bank’s unification of the foreign exchange windows aimed to eliminate arbitrage and attract foreign portfolio investments. However, seasonal demand for import clearances and foreign tuition payments continues to exert immense pressure on the local currency.

What this means for the naira and Nigerian businesses

Financial analysts note that while mid-week liquidity injections provided a brief cushion, the consistent daily slide indicates that aggregate demand for international payments continues to outpace available dollar supplies in the official window. Bigger structural changes to boost non-oil export revenues are needed to ease persistent pressure on the naira.