The naira fell to N1,483 per dollar on the parallel market on Wednesday, driven by rising demand from importers and retailers preparing for year-end purchases. Central Bank of Nigeria data showed the currency also weakened in the official market, where it traded at N1,454 per dollar on Tuesday compared with N1,448 the previous day.
Demand pressures have increased as businesses front-load their foreign exchange needs, while international travel bookings and school fee payments continue to push up retail dollar purchases. Traders say the market has been under steady strain despite earlier stability seen at the end of November.
The US Federal Reserve’s hawkish signals are also strengthening the dollar, with investors favouring US assets ahead of an anticipated policy decision later today. Strong US job openings and concerns over inflation have reduced expectations of a December rate cut, lifting the US Dollar Index and tightening conditions for frontier currencies such as the naira.
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Despite the latest pressure, the naira has appreciated by about 5.7 percent this year due to CBN interventions, FX reforms and rising diaspora remittances. Analysts say markets are watching Federal Reserve Chair Jerome Powell’s statement closely, as any shift in the pace of rate cuts could influence global currency movements.
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