By Atoyebi Nike
The Nigerian Naira started the week at ₦1,560 per dollar in the parallel market, following rising demand from travelers preparing for the summer holiday season.
Currency dealers said the uptick in demand by end-users is driving fluctuations, although the Central Bank of Nigeria’s (CBN) policies have helped keep the exchange rate relatively stable in recent months.
On Friday, the Naira closed at ₦1,533.7/$, dropping slightly by 19 kobo. Official CBN data pegged the rate at ₦1,533.5/$.
Midweek trading showed further pressure, with the Naira trading at ₦1,534.5/$ on Wednesday, slightly weaker than Tuesday’s rate of ₦1,533.18/$.
Foreign investment into treasury bills and bonds continues to grow, helping boost liquidity. Analysts at Coronation predict the Naira will stay within the ₦1,500–₦1,600/$ range, supported by investor confidence and central bank reforms.
Meanwhile, global factors are also affecting forex markets. The US Dollar Index (DXY) stood at 98.70 as of Monday, after sliding 1.5% last week.
A weaker-than-expected US jobs report released on Friday has increased expectations for Federal Reserve rate cuts, with traders now anticipating 63 basis points of cuts before year-end—up from 34 points the day before.
Nonfarm Payrolls showed just 7,300 new jobs in July, far below the 11,000 expected and sharply down from June’s revised 14,000 figure.
The US unemployment rate ticked up to 4.2%, in line with forecasts.
Tensions escalated further when Federal Reserve Governor Adriana Kugler resigned and President Donald Trump fired BLS Commissioner Erika McEntarfer over what he called “massive job data miscalculations.”
Trump has pledged to announce new appointments to the Fed and the BLS, a move that analysts say could reshape US economic direction and influence global market trends.
