CBN Releases New Exchange Rate For Naira as Dollar Crashes to Three-Year Low
- The Nigerian currency has depreciated hours after the US dollar fell to a three-year low
- Data from the official Nigerian Foreign Exchange Market shows that the naira depreciated to N1,606.50 on Tuesday, April 2025, from N1,600
- The naira’s depreciation comes as the US currency fell among leading global currencies such as the euro and the sterling
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian currency depreciated in the official window on Tuesday, April 22, 2025, despite the dollar hitting a three-year low.
The Nigerian currency closed trading at N1,606 to a dollar from N1,600.50 it traded on Thursday, April 18, 2025.
Source: Getty Images
The naira falls alongside the dollar
The depreciation comes amid the decline in Nigeria’s foreign exchange reserves, which depreciated by $111.17 million to $37 billion.
Data from the Nigerian Foreign Exchange Market (NFEM) released by the Central Bank of Nigeria (CBN) shows that dealers quoted the dollar at a high of N1,610 and a low of N1,598.50.
Legit.ng previously reported that the US dollar fell on Monday, April 21, 2025, to its lowest since March 2022 as investor confidence in the US economy crashed.
Reports say the dollar declined due to President Donald Trump’s attacks on Federal Reserve Chairman Jerome Powell.
The dollar vs other currencies
Compared to other currencies, the dollar hit its lowest, trading at 97.923 on Monday, April 21, 2025.
It also crashed to a 10-year low against the Swiss franc, while the euro rose above $1.15, its highest since 2021.
The British pound sterling appreciated to its highest since September 2024 at $1.34 against the dollar, while the Australian dollar rose to a four-month high of $0.6430.
Reuters reports that the New Zealand dollar moved up, trading at $0.6000 for the first time in over five months.
According to reports, Trump's social media attacks on Powell potentially threatened the Federal Reserve’s autonomy.
The US President had called Powell a major loser on social media and asked that he lower interest rates immediately.
Experts say that Trump’s tariffs and uncertainty over trade policies shocked global markets and darkened the outlook for the US, weakening the dollar as investors pull funds out of US assets.
The naira steadies against the euro
Meanwhile, the Nigerian currency, the naira, recorded a mixed performance in the FX market last week.
While the naira appreciated slightly against the dollar in the official market, closing at N1.599.94 per dollar on Thursday, up from N1.603.78, it depreciated significantly in the parallel market.
The naira also steadied against the euro, defying the European currency’s strong advance.
The naira showed resilience against the euro despite its one per cent gain against the dollar.
The development came after the euro/naira FX rate rose to N1,845 on Monday, April 21, 2025, climbing above the N1,800 ceiling.
Source: Getty Images
Analysts attributed the movement to increased demand for euros amid global shocks caused by capital inflows and anxieties over Nigeria’s trade balance.
Naira: CBN intervenes to stabilise
Reports say investors flocked to the euro as a safer asset amid rising geopolitical tension between the US and China, marking a reversal of the dollar’s three-year dominance.
Experts have said the naira’s gain was due to robust FX interventions by the Central Bank of Nigeria (CBN),
CBN reportedly sold about $280 million to authorised dealers to stabilise the naira.
However, Nigeria’s external reserves have depreciated by $111.21 million to $37.89 billion as of April 16, 2025, the fifth consecutive weekly decline.
Nigeria, China sign deal to reduce dollar dependence
Legit.ng earlier reported that the Nigeria-China Strategic Partnership has disclosed that Nigeria would soon ink a deal on Digital RMB with China to allow a direct conversion of naira to Chinese Yuan.
The digital renminbi (RMB) is a central bank digital currency issued by the Chinese apex bank, the People’s Bank of China.
The Director-General of the NCSP, Joseph Tegbe, disclosed that the deal was expected to reduce Nigeria’s dependence on the US dollar.
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Source: Legit.ng
