Naira Weakens to N1,612/$1 at Official Market Amid Persistent FX Supply Concerns

The Nigerian naira continued its downward trajectory on Wednesday, weakening to N1,612 per US dollar at the official foreign exchange market. This marks a fresh low for the local currency and underscores the ongoing challenges facing Nigeria's foreign exchange (FX) market.

Market analysts attribute the persistent pressure on the naira to limited dollar supply, a problem that has plagued the economy despite recent monetary policy efforts by the Central Bank of Nigeria (CBN).

"FX liquidity remains tight, and without a significant inflow of foreign capital or improvement in export revenues, the naira will likely remain under pressure," said a Lagos-based financial analyst.

The weakening of the naira at the official window mirrors similar trends in the parallel market, where the currency has also faced sharp depreciation in recent weeks.

The CBN has yet to issue a formal statement on the latest rate movement, but market watchers are urging swift action to restore investor confidence and stabilize the foreign exchange market.