The Nigerian naira has experienced fluctuating trends in the foreign exchange market, with the official exchange rate now surpassing the black market rate. This development follows Nigeria’s progress toward a unified exchange rate system.
The value of the naira in relation to the US dollar and other major currencies has been comparatively constant since the start of 2025. The Central Bank of Nigeria’s (CBN) vigorous operations in the foreign exchange market are mostly to blame for this stability.
Instead of focusing solely on the official market, the CBN has expanded its efforts by selling US dollars to commercial banks and granting Bureau de Change (BDC) operators access to forex at official rates. Analysts at LSintelligence Associates noted that this approach has helped strengthen the naira, although it comes with hidden costs.
Despite the naira’s gains, Nigeria’s foreign reserves are gradually depleting due to continuous forex interventions. As of Friday, the country’s external reserves had dropped to $38.7 billion, marking a three-year low.
On Monday, the naira weakened slightly in the official market, closing at ₦1,503.63 per US dollar, a 0.17% drop. However, in the parallel market, the naira appreciated, closing at ₦1,490 per US dollar, gaining ₦20 per dollar.
Market liquidity remained stable, supported by CBN interventions. Trading activities in the official market fluctuated within the range of ₦1,500.00 to ₦1,515.00 per dollar.
Global Market Update Oil prices remained steady as investors kept an eye on peace talks regarding the Ukraine conflict and the possible resumption of crude exports from northern Iraq.
- Brent crude dropped slightly by 6 cents (0.1%) to $74.37 per barrel.
- US West Texas Intermediate (WTI) declined 14 cents (0.2%) to $70.26 per barrel.
- Gold prices hit a new record due to increasing demand for safe-haven assets amid concerns over US trade policies.
- Spot gold hit a record high of $2,956.15, and then increased 0.2% to $2,941.60 an ounce.
