Again, Dollar Falls in Foreign Exchange Market as Official, Parallel Rates Narrow
- The US dollar crashed again in the official foreign exchange market compared to the previous day’s rate
- The Nigerian naira recovered, closing at N1,501 per dollar against the N1,504 it traded the previous day.
- However, the local currency depreciated slightly in the parallel market but remained strong compared to other days’ performances
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The naira strengthened against the US dollar on Tuesday, February 25, 2025, relative to the previous day’s rates.
The Nigerian currency traded stronger in the Nigerian Foreign Exchange Market (NFEM) than on Monday, February 24, 2025.
Source: Getty Images
Naira gains N3 against dollar
Data from the Central Bank of Nigeria (CBN) NFEM portal shows that the naira opened trading strong at N1,495.91 against the dollar.
Currency dealers quoted the dollar at a high of N1,505 and a low of N1,495 per dollar before closing at N1,501.50
The naira traded stronger on Tuesday, February 25, 2025, at N1,501.50 than on Monday, February 24, 2025, at N1,504 per dollar.
Naira depreciates in black market
However, in the parallel segment of the foreign exchange market, the local currency recorded a marginal loss of N2, closing at N1,502 relative to N1,500 it traded the previous day.
At the current rate, the gap between the parallel and official windows narrowed to just N1.
The naira is expected to continue its strong performance against the US dollar and other major currencies.
Naira’s rate: CBN’ EFEMS boosts transparency
Legit.ng previously reported that the naira remained strong against the British pound sterling, the euro and the Canadian dollar since the CBN launched the Electronic Matching System on December 2, 2024.
The apex bank mandated all banks and authorised dealers in the interbank foreign exchange market to migrate to the Bloomberg BMarch System for trading to boost transparency and efficiency.
The platform went live on December 2, 2024, and boosted transparency and operational efficiency in Nigeria’s forex market.
Due to this, the Nigerian naira rose in value against the British pound sterling by N209.01 to a pound, representing an 11.02% gain.
CBN data shows the pound was quoted at N1,896.62 as of February 21, 2025, relative to N2,105.63 on December 2, 2024, when the EFEMS was launched.
The naira shows strength in the black market
In the parallel segment of the foreign exchange market, the naira rose to N1,920 against the pound as of February 2, 2025, relative to an average rate of N2,238 per pound in December 2024.
Source: Getty Images
The local currency also gained against the euro in the official market at N176.67, representing an 11.3% gain at N1,569.16 to the euro on February 21, 2025, from N1,745.83 as of December 2, 2024.
The euro also crashed in the parallel market, closing at N1,525 on Monday, February 24, 2025, trading at N1,600 per euro.
The Canadian dollar also traded low in the black market at N1,100 to CAD as of Monday, February 24, 2025.
Since the EFEMS commenced, the Nigerian currency has gained N157.50 against the US dollar, representing a 10.48% gain relative to the N1,660 it traded on December 2, 2024.
Dollar falls in all markets as the naira strengthens
Legit.ng earlier reported that the Nigerian currency, the naira held steady across all forex markets despite the decline in the nation’s reserves.
Information from the Central Bank of Nigeria (CBN) indicated that the naira rose in value to N1,502 per dollar week-on-week, gaining 0.56% or N8.50 relative to N1,511 it closed the previous week at the Nigerian Foreign Exchange Market (NFEM).
Currency dealers quoted the dollar at a high of N1,509 more than the N1,520 quoted the previous week.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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