Naira Appreciates, CBN Adjusts Exchange Rates as Dollar Falls to Lowest in Three Years

• The Nigerian currency, the naira, has rallied against the US dollar in the FX market after depreciating the previous day
• Data from the CBN disclosed that the naira closed trading at N1,603 to a dollar from N1,606 the previous day
• The naira’s recovery comes amid several FX interventions by the Central Bank of Nigeria (CBN)

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

The Nigerian currency has rebounded slightly against the US dollar in the official Nigerian Foreign Exchange Market (NFEM).

At the close of trading on Wednesday, April 23, 2024, the naira was quoted at N1,603 to a dollar as against N1,606 the previous day.

The naira recovers as the dollar crashes

The naira’s rebound came amid the crash of the US dollar to a three-year low as top economies sought safer havens with the euro.

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According to a previous Legit.ng report, the US dollar crashed to its lowest in three years amid tariffs by President Donald Trump.

Meanwhile, currency dealers quoted the dollar at a high of N1,606 per dollar and a low of N1,591.23.

The shift in the naira’s rally came as the Central Bank of Nigeria (CBN)  sold forex to authorised dealers to crash the dollar’s value and hedge the local currency from further depreciation.

Experts give reasons for the naira’s volatility

Experts have said the naira suffers from twin challenges of global trade tariffs imposed by the US government and falling oil prices, as investors pull investment from weaker economies.

“This is not the best of times for weaker currencies as Donald Trump’s sweeping tariffs are hurting vulnerable economies and their currencies, especially the naira,” Janet Ogochukwu, a senior banker and an economist, said.

According to her, the challenges have eroded Nigeria’s FX reserves, which have depreciated by over $100 million in the past week.

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CBN releases new exchange rate for naira as dollar crashes to three-year low

Available data shows that Nigeria’s apex bank intervened in the FX market three times in April by selling FX to dealers to stop the naira from total collapse.

Naira: CBN intervenes in FX market

In early April, CBN sold about $197.17 million to authorised dealers, assuring Nigerians of the strength of the FX market.

However, the financial sector regulator sold another round of FX on April 22, 2025,  amid a fresh decline in the naira’s value. 

Data from the CBN revealed that the naira weakened by 0.2% at the Nigerian Foreign Exchange Market (NAFEM), with the exchange rate closing at N1,602.63/$ compared to N1,599.93/$ recorded last Thursday before the Easter holiday. 

While in the black market, also known as the parallel market, the naira closed flat, steadying at N1,610 per dollar, according to data collated from street traders and online platforms. 

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Dollar crashes to three-year low as naira appreciates against pound, euro, others

Legit.ng earlier reported that as of April 2025, several African currencies have rebounded against the US dollar, showing various degrees of appreciation and resilience, monetary policies, and economic structure.

The strength of a country's currency is one of the key indicators of economic health and stability.

These countries have maintained relatively stable monetary policies, keeping their currencies robust amid global tariffs imposed on nations by the US government.

Source: Legit.ng