Naira extends decline at official and parallel markets as reserves drop

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The naira depreciated further against the US dollar on Thursday at both the official and parallel foreign exchange markets, extending a three-day losing streak. Data from the Central Bank of Nigeria (CBN) showed the naira weakened to N1,366.73 per dollar from N1,366.71 on Wednesday, a marginal slip of N0.02.

Official market

At the official window, the naira has now recorded consecutive declines for three straight sessions. The latest CBN data puts the depreciation at just N0.02 day-on-day, pointing to sustained but modest pressure on the domestic currency.

The development comes as Nigeria's foreign reserves dropped to $51.92 billion on July 29, 2026, from $51.94 billion recorded the previous day, according to the apex bank.

Parallel market

At the black market, the naira lost N3 against the dollar on Thursday, trading at N1,418 per dollar compared with N1,415 the previous day. The wider drop in the parallel market reflects stronger demand for dollars outside the official channel.

The gap between the official and parallel rates stands at about N51 per dollar, underscoring continued pressure on the naira as businesses and individuals seek foreign currency.

Reserves and outlook

The slight decline in external reserves to $51.92 billion adds to concerns about the naira's near-term stability. While the official rate moved only marginally, the sustained slide over three days suggests the currency has yet to find a firm footing.

For Nigerian businesses that rely on dollar imports, the continued depreciation raises the cost of goods and services, and the widening parallel market premium points to lingering demand for dollars. The coming days will show whether the CBN steps in to defend the naira or allows further adjustment.

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