Access, Zenith, Other Currency Dealers Sell Dollar at New Rate as CBN Releases New Exchange Rate

• The naira depreciated further in the official Foreign Exchange Market on Wednesday, March 12, 2025
• Currency dealers quoted the dollar at N1,546, down from the N1,537 it traded the previous day
• The naira’s depreciation came amid calls from Chatham House against the Nigerian government strengthening the naira

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian naira tumbled again in the Foreign Exchange Foreign Market (NFEM) amid demand pressures from USD buyers.

The pressure against the local currency persisted amid calls for Nigeria not to strengthen the naira over its competitiveness.

The naira trades at its lowest in March

Data from the Central Bank of Nigeria (CBN) shows that at the end of trading on Wednesday, March 12, 2025, the naira closed at N1,546 to a dollar, down from N1,537 on Tuesday, March 11, 2025.

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The naira has been in freefall since the second week of March, following dwindling reserves. It hit a new low in February as the Central Bank of Nigeria (CBN) embarked on international payments. 

The naira recorded its best performance on March 3, 2025, exchanging for N1,502 per dollar.

On Wednesday, currency dealers quoted the dollar at a high of N1,550 and a low of N1,520 to the dollar.

Experts have asked the CBN to conduct another round of foreign currency interventions in the FX market to prevent the naira from total collapse.

The calls are against the advice by a UK group, Chatham House, that strengthening the naira will reduce its competitiveness in the global foreign currency markets.

Chatham House warns against stronger naira

Chatham House noted that after its depreciation, the naira is better positioned to help the Nigerian economy progress. 

In an article titled Nigeria’s Economy Needs the Naira to Stay Competitive, the think tank noted that while inflation has surged under President Bola Tinubu, strengthening the naira was not the best way to improve the situation. 

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Chatham House warns FG not to strengthen naira, lists benefits for Nigeria’s economy

It argued that the weaker naira has made Nigeria more competitive compared to previous years when the naira exchanged around N460/$. 

Chatham House further argued in the article that the naira depreciation has improved Nigeria’s Balance of Payments and return of capital into the country, helping the CBN to increase its foreign exchange reserves to prudent levels where it is roughly around the same level as the foreign debts.

Experts ask CBN to ignore Chatham House’s warnings

However, economists have asked Nigerian monetary policymakers to ignore Chatham House's advice and defend the naira.

Janet Ogochukwu, economist and senior banker, said there is an urgent need for the apex bank to defend the local currency as that would reduce inflation in the country.

“One of the main drivers of inflation in the country is the exchange rate. Nigeria is an importing country and so needs foreign goods to survive. The call not to strengthen the naira does factor in local dynamics such as low production, and escalating living costs, which are squeezing households.”

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Naira reverses gains, depreciates against USD amid profit-taking from foreign investors

He asked foreign advisors to come down from their high horses, face reality and understand Nigeria’s peculiar circumstances.

Naira bounces back in official window

Legit.ng earlier reported that after days of depreciation, the naira rebounded in the official Nigerian Foreign Exchange Market (NFEM) on Monday, March 10, 2025.

The naira was buffeted for most of last week following a dwindling reserve that depreciated by over $1 billion in February.

From March 4, 2025, through March 7, 2025, the naira shed about N45 against the US dollar, widening the gap between the parallel and official windows.

Proofreading by Nkem Ikeke, copy editor at Legit.ng.

Source: Legit.ng