Naira falls to N1,379/$ as FX turnover drops 10% w/w

The naira closed the week under renewed pressure, sliding to ₦1,379 per dollar at the Nigerian Foreign Exchange Market (NFEM) on Friday as rising demand for international payments outpaced available liquidity.

The local unit traded within a volatile band of ₦1,375–₦1,382, underscoring persistent strain at the official window.

According to Central Bank data, interbank FX turnover fell to US$71.044 million, marking a 10 per cent week-on-week decline from US$78.708 million the previous day.

Deal counts also dropped to 87, down from 106 on Thursday, highlighting tighter liquidity conditions.

Total FX inflows into the Nigerian market last week settled at US$0.99 billion, with Foreign Portfolio Investors contributing the largest share at 35.81 per cent (US$0.35 billion).

Exporters accounted for 28.72 per cent (US$0.28 billion), while the Central Bank injected 11.15 per cent (US$0.11 billion). Non-bank corporations added 10.92 per cent, reflecting continued support from both market-driven and official sources.

Globally, the US Dollar Index (DXY) traded around 100.85, after touching a one-week low of 100.60 earlier in the Asian session. Despite renewed hostilities between the United States and Iran, the index is set to finish the week virtually unchanged, as traders balanced geopolitical risks with hawkish Federal Reserve expectations.

Analysts say the naira’s weakness reflects a mismatch between rising demand for dollar settlements and limited supply, with shrinking interbank turnover and fewer trades pointing to persistent liquidity pressures. Unless inflows strengthen in the coming weeks, the local currency may remain under strain despite support from portfolio investors and exporters.