The Naira has continued its downward trend against the US dollar at the official foreign exchange market, depreciating to ₦1,534.44 per dollar, despite a steady increase in Nigeria’s external reserves, which climbed to $39.81 billion on August 4, 2025.
The parallel market saw no movement, with the Nigerian currency holding steady at ₦1,565 to the dollar.
The persistent dollar shortage has pushed the Naira further down in the parallel market, marking the second depreciation this week.
According to data from the Central Bank of Nigeria, the Naira weakened further, reflecting a daily loss of ₦1.34.
This development has raised concerns about the impact of external reserves on the Naira’s value and the overall stability of the foreign exchange market.
The increase in external reserves is expected to boost investor confidence and stabilize the Naira.
However, the Naira’s depreciation suggests that other factors, such as dollar scarcity and market sentiment, are influencing its value.
The Central Bank of Nigeria may need to implement measures to address these issues and stabilize the currency.
