Nigerian Naira Slips Against Dollar Amid Increased Demand Pressure

The Nigerian naira weakened against the US dollar on Thursday, August 6, closing at N1,364.88 per dollar. This represents a loss of N2.33 or 0.17% compared to Wednesday's close of N1,362.55.

Despite increased foreign exchange liquidity, the naira slipped further against the dollar in the official market. FX turnover rose by over 31% to $98.804 million, with the number of deals increasing from 82 to 106.

The local currency also shed value against the pound sterling, settling at N1,838.09 per pound from N1,837.38 on Wednesday. However, it gained slightly against the euro, trading at N1,574.80 per euro from N1,575.25.

Market participants expect the naira to hold steady in the near term, with increased dollar liquidity acting as a buffer against demand pressure. The Central Bank of Nigeria's (CBN) continued sales of dollars are expected to offer further support and help contain sharp exchange-rate swings.