Domestic currency records marginal depreciation across the official and forward markets, while external reserves decline by $106.87m.
The naira recorded a marginal depreciation against the US dollar during the week, closing at N1,349.00/$ in the Nigerian Foreign Exchange Market (NFEM), representing a 0.1 per cent decline despite a $50 million intervention by the Central Bank of Nigeria.
The depreciation highlights continuing pressure within the foreign exchange market, even as the apex bank maintains interventions aimed at supporting liquidity and moderating exchange-rate fluctuations.
Nigeria’s gross external reserves also declined during the period, shedding $106.87 million to close at $55.13 billion as of November 5, 2026.
The movement in reserves comes amid changing foreign exchange market conditions and the need to maintain adequate external buffers to support the country’s capacity to meet international payment obligations.
Performance in the naira forward market was similarly negative, with the domestic currency depreciating across all major contract maturities.
The one-month forward contract weakened by 0.2 per cent to N1,370.19/$, while the three-month contract also declined by 0.2 per cent to N1,405.78/$.
The six-month forward rate depreciated by 0.2 per cent to N1,455.88/$, while the one-year contract recorded a more pronounced decline of 0.6 per cent to N1,557.65/$.
The broad-based weakness across forward maturities indicates that market participants continue to price in exchange-rate uncertainties over the medium to longer term.
Looking ahead, the naira is expected to remain broadly stable around prevailing levels in the near term, supported by Nigeria’s foreign reserves position and the continued current account surplus.
However, risks to exchange-rate stability remain, particularly if declining domestic yields reduce the relative attractiveness of naira-denominated assets or tighter global financial conditions weaken foreign portfolio investment inflows.
