The naira weakened across foreign exchange (FX) markets on Wednesday, November 5, following reduced liquidity and a slight uptick in demand for the dollar.

According to the Central Bank of Nigeria (CBN), the currency dropped 0.3% in Wednesday’s trading, with the dollar closing at N1,438.49, up from Tuesday’s N1,433.65 in the Nigerian Foreign Exchange Market (NAFEM).

In the parallel or black market, the naira fell by N20, closing at N1,460 per dollar, marking a 1.4% decline from Tuesday’s N1,440.

Meanwhile, the daily rate for international transactions using the GTBank Naira card stood at N1,446 per dollar on Wednesday, slightly up from N1,443 the previous day Despite the naira’s pressure, Nigeria’s external reserves continued to grow, reaching $43.27 billion as of November 4, 2025.

However, foreign exchange inflows through NAFEM slowed last week, falling to $1.04 billion from $1.37 billion the previous week, according to Coronation Merchant Bank.

The report indicated that foreign portfolio investors (FPIs) contributed the largest share, accounting for 62.3% ($645.40 million) of total inflows.

Exporters provided 15%, non-bank corporates 11.6%, foreign direct investments (FDIs) 1.9%, and other sources made up 9.2%.

The naira’s decline on Wednesday followed a volatile start to the week. On Monday, the currency had dropped 1.0% in the official FX market after comments by US president Donald Trump targeting Nigeria triggered market uncertainty.

Ayokunle Olubunmi, head of Financial Institutions Ratings at Agusto & Co., attributed the naira’s earlier weakness to Trump’s remarks, which unsettled both currency and bond markets, BusinessDay reports.

He said: “It’s not surprising, because even the bond market showed a dip. So yes, I think it’s largely due to Trump’s pronouncement." Olubunmi noted that such reactions are not unusual, explaining that markets often respond sharply to political statements.

He added. “The response in both the currency and bond markets was expected, considering they had already been under pressure following Trump’s comments."