Naira Depreciates Further Against Dollar Despite Stable Reserves

By Diafa Doubra,

The Nigerian naira has continued its slide against the United States dollar, trading at about ₦1,537 per dollar in the parallel market, despite the country’s external reserves standing at $41.89 billion as of September 16, 2025.

According to market watchers, the continued depreciation reflects persistent pressure on foreign exchange demand, especially from importers and businesses struggling to access forex through official channels.

Analysts warn that unless supply improves and confidence returns to the market, the naira may remain volatile in the coming weeks. They, however, note that the Central Bank’s recent policies, including interventions to boost reserves, could help stabilize the currency if consistently implemented.

The naira’s depreciation has fueled concerns over rising inflation, with many Nigerians worried about the impact on food prices, transportation, and essential goods.