Naira Bounces Back, Appreciates Against US Dollar in Official Market
- The value of the naira has appreciated against the United States dollar in the official foreign exchange market
- The new exchange rate comes on the back of consecutive losses for the naira across all markets
- Pressure on the naira against the US dollar in the parallel market continued as BDC traders increased exchange rates
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The naira has recovered against the United States dollar in the official foreign exchange market after several days of losses.
New data from the Central Bank of Nigeria showed that in the Nigerian Foreign Exchange Market (NFEM), the naira closed at N1,597.70/$1 on Monday, May 12, 2025.
Source: Getty Images
Monday’s exchange rate represents an appreciation of N9 or 0.5% from the previous day’s closing rate of N1,607/$1.
It is also the first time since April 28, 2025, that the naira achieved a closing exchange rate below N1,600 against the naira.
Naira against other currencies
Similar appreciation was recorded for the naira against the Pound Sterling and the euro in the official market.
On Friday, May 9, the Nigerian naira closed at N2,145.48/£1 against the Pound Sterling and N1,818.42/€1 against the Euro in the official foreign exchange market.
By Monday, the naira had appreciated against both currencies. The exchange rate for the Pound Sterling dropped to N2,114.02/£1, while the Euro fell to N1,780.80/€1, reflecting an improved performance of the local currency.
Here is a snapshot of the latest exchange rates
- CFA: N2.76
- Yuan/Renminbi: N222.05
- Danish Krona: N238.71
- Euro: N1780.81
- Yen: N10.81
- Riyal: N426.68
- South African Rand: N87.52
- Swiss Franc: N1900.99
- Pounds Sterling: N2114.02
Source: Getty Images
Naira falls against dollar at black market
In the parallel market, also known as the black market, the naira told a different story against the US dollar.
Traders who spoke to Legit.ng confirmed that the Nigerian currency depreciated against the dollar.
Abdullahi, a BDC trader, told Legit.ng:
"The dollar selling exchange rate has increased to N1,627, while we buy at N1,617 from customers. However, the pound and euro exchange rates remain at N2,155/£1 and N1,815/€1, respectively.
"I expect that by the end of the week, the exchange rate for the naira will have improved."
CBN releases amount spent to print naira notes
Earlier, Legit.ng reported that the CBN released the amount it spent on printing, distributing, and disposing of naira notes in 2024.
The CBN explained that currency issuance expenses relate to costs incurred in the printing, processing, distribution, and disposal of currency notes.
The CBN regularly destroys unfit banknotes under strict security measures, authorised by Section 18(d) of the CBN Act 2007.
There is a mandate given to Zenith, UBA, Wema, and other commercial banks in Nigeria to ensure cash availability.
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Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
