The naira has fallen in value against the United States dollar for the third day straight, ending trades on Wednesday at 1,473.29 naira to the dollar.
Since Monday, the local money has faced tough times in the official Nigerian foreign exchange market. It opened the week at 1,457.51 naira per dollar, slipped to 1,463.23 on Tuesday, and dropped another 10.06 naira, or 0.69 per cent, by the close of business on Wednesday.
In the unofficial market, the rate stood at 1,500 naira to the dollar on Tuesday but improved slightly to 1,488 by the end of Wednesday.
Market watchers at a financial firm put the slide down to lower interest from buyers in recent days.
This downturn follows a brighter spell last week, when the naira reached its strongest point in ten months at 1,455.17 naira per dollar.
The latest trend runs against hopes from experts, who expected the currency to hold steady thanks to help from the Central Bank of Nigeria and fresh money coming in from overseas.
Forecasters had predicted a brighter path for the naira, but one advisory group cautioned in its latest update that growing needs for imported goods or slower foreign cash could hold back more improvements. Prices for oil, a big earner for the country, face downward pull from extra supplies on the world market, though a pick-up in global buying could lend a hand to Nigeria’s overseas income and steady the exchange scene. Shifts in worldwide oil trading might still make investors wary.
Nigeria’s stockpile of foreign cash keeps growing steadily. By Monday, it had risen to 42.63 billion dollars, up from 42.59 billion on the previous Friday.
The head of the Central Bank, Olayemi Cardoso, spoke at a press event for the Group of 24 during the ongoing meetings of the International Monetary Fund and World Bank in Washington. He described the naira as far more able to compete now, following changes and steps to firm up its value.
He noted that the bank had built up strong defences against sudden jolts and helped shape steady views on the economy, leaving those who track Nigeria’s finances feeling at ease.
Mr Cardoso went on to say that the real power of the currency comes from making more goods at home. The country is reshaping its whole economic setup, and a stronger naira is speeding along that change.