Naira under pressure amid global tariff

Nigeria’s naira continued its downward slide on Monday, weakening to N1,629 per dollar at the official exchange market, compared to N1,600/$1 at Friday’s close. The decline comes amid rising global financial uncertainty triggered by escalating U.S. tariff threats, which have shaken investor confidence and intensified demand for the dollar.

Despite the Central Bank of Nigeria’s (CBN) continued efforts to stabilize the currency, pressure on the naira persists. On Monday, the apex bank sold $124 million at rates ranging from N1,595 to N1,611 in an attempt to bolster liquidity. This followed a $197 million intervention on Friday. However, the sustained depreciation indicates that these measures are struggling to keep pace with growing dollar demand and broader market concerns.

The naira also weakened at the parallel market, falling to N1,560/US$ on Monday from N1,550/US$ on Friday. The persistent gap between the official and parallel market rates reflects ongoing pressure on the country’s foreign exchange reserves and limited dollar supply.

The local currency lost ground against other major currencies as well. The naira closed at N2,015/GBP against the British pound, down from N2,005/GBP last week. It also dipped against the euro, ending the day at N1,670/EUR compared to N1,655/EUR previously. Against the Canadian dollar, the naira slipped slightly to N1,115/CAD from last week’s N1,110/CAD. However, it remained unchanged against the Chinese yuan, closing at N215/CNY.

Analysts say the naira’s persistent depreciation reflects both external shocks and domestic structural issues, including low export earnings and limited foreign investment. As global markets react to ongoing trade tensions, Nigeria’s monetary authorities face increasing pressure to find more sustainable solutions to stabilise the currency.

With no immediate end in sight to the global tariff standoff, further volatility in the naira is expected in the coming weeks.

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