New Exchange Rate: British Pound, Dollar, Euro Crash in Black Market

• The value of the Nigerian currency has improved against various foreign currencies, including the pound and the euro
• A market survey revealed that the British pound is now below the N2,000 exchange rate, while the dollar is near N1,600
• The CBN has released a new forex code, which is expected to further help improve forex liquidity in the market

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 Nigerian currency, the naira, has improved against major foreign currencies, including the US dollar, British pound, and the euro in the unofficial foreign exchange market, following recent market developments.

Checks by Legit.ng on Wednesday, January 29, revealed that the US dollar was sold at N1,628 on the streets of Lagos, with the buy rate at N1,615.

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This new exchange rate marks an improvement from the N1,650 per dollar it was sold for on Friday, January 24.

Similarly, the selling rate for the British pound on Friday was N2,005/£1, while the buying rate was N1,980/£1. As of the previous Friday, the pound had been sold in the black market as high as N2,060/£1.

For the euro, the selling rate in the black market on Wednesday was N1,675/€1, while the buying rate stood at N1,660/€1.

In the official exchange market, the value of the Nigerian currency also improved against the dollar, closing at N1,522.68 on Tuesday, January 29, compared to Monday’s closing price of N1,533.63/$1.

Why the naira improved

The naira’s improvement follows continued signals from the CBN that it is ready to support the market. One of its key strategies is to clear all pending foreign exchange backlogs after the completion of a forensic audit on forex claims.

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Additionally, the CBN introduced a forex code aimed at promoting the integrity and efficient operation of Nigeria’s wholesale forex market.

This move is designed to support improved market performance and strengthen Nigeria’s flexible exchange rate system.

Furthermore, the CBN announced a waiver for the 2025 license renewal fee for existing Bureau De Change (BDC) operators.

These moves by the CBN have provided a positive boost to investor confidence and contributed to greater stability in the naira’s exchange rate, which is expected to continue in the months ahead.

Reacting to the license fee waiver, Aminu Gwadabe, president of the Association of Bureau De Change Operators of Nigeria (ABCON), told Legit.ng that it is a welcome development.

His words:

"On behalf of the entire members of the Central Bank licensed Bureaux de change operators I want to say a big thank you to the management of the Central Bank for the annual license renewal amnesty extended to our members."

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Naira appreciates against US dollar after CBN introduces new FX code

Economists predict N1,300/$ exchange rate in 2025

Legit.ng reported that the Nigerian Economic Summit Group (NESG) had forecast a massive naira appreciation to an average exchange rate of N1,300 to the US dollar in 2025.

The optimistic projection was stated in its 2025 economic outlook.

According to NESG, the exchange rate forecast was based on higher foreign exchange earnings, driven by increased crude oil sales, revitalised manufacturing output from the oil refining sub-sector, and improved agricultural productivity.

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

Source: Legit.ng