The naira fell by 2.4% and 2.6% in March at the Nigerian Autonomous Foreign Exchange Market (NAFEM) and the parallel market, respectively, according to the latest Afrinvest Monthly Market Report. The currency closed at N1,536.82/$ at the NAFEM window and N1,530.00/$ in the parallel market.
Despite the Central Bank of Nigeria (CBN) injecting $668.8 million into the market, the naira faced significant depreciation due to persistent demand pressures. AIICO Capital confirmed that the naira weakened by 2.97% month-on-month, reflecting robust demand from foreign portfolio investors and local corporations.
The CBN’s interventions helped improve liquidity temporarily, but demand continued to outstrip supply. In the final week of March, the naira experienced a slight appreciation but remained under pressure, ultimately closing at N1,567.02/$.
Analysts predict that the naira will continue to face challenges amid global economic shifts, including recent U.S. tariffs. The CBN stated it remains committed to ensuring adequate liquidity to stabilize the naira, but concerns over increasing domestic dollar demand could complicate efforts.
