Naira Reverses Gains, Crashes Against Dollar, Euro, Pound Sterling to New Exchange Rates

• The value of the naira has improved against the United States dollar in the foreign exchange markets
• The latest exchange rate represents a reversal from the strong performance the naira has enjoyed in recent days
• A new report has predicted that the naira will fall further as the reason for the recent appreciation fizzles out

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.

Nigerian currency's value has depreciated against the US dollar in the official Nigerian Autonomous Foreign Exchange Market (NAFEM).

New data shows that the naira closed at N1,510.00/$1 in the foreign exchange market on Thursday, February 13.

The new exchange rate represents a depreciation of 0.23% or N1.80 compared to the previous day's closing rate of N1,506.56/$1.

While in the parallel market, the naira also lost N5 against the dollar to quote at N1,660/$1 compared with the preceding day’s rate of N1,655/$1.

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Naira against pound euro

It was the same story for the Nigerian currency at the official window against the pound and the euro.

CBN data showed that the naira's exchange rate fell against the pound sterling and the euro in the official market on Thursday.

For the pound sterling, it fell from N1,872.10/£1 on Wednesday to N1,879.42/£1 on Thursday.

Meanwhile, the euro, which exchanged at N1,559.96/€1 on Wednesday, increased to N1,566.23/€1 on Thursday.

Other currencies' exchange rates on Thursday are as follows:

• CFA: N2.38
• Yuan/Renminbi: N206.60
• Danish Krona: N209.63
• Euro: N1,566.23
• Yen: N9.80
• Riyal: N402.03
• South African Rand: N81.37
• Swiss Franc: N1,660.66
• Pounds Sterling: N1,879.42

New prediction for naira

Comercio Partners Limited, a leading investment banking firm, has projected that the naira would close at N1,700 per dollar in the first half of 2025.

The firm made this prediction in its 2025 Macro Economic Outlook report titled "Looking Forward to the Future."

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Comercio stated that the current appreciation of the naira was due to Eurobond issuance, adding that the depreciation of the naira remained inevitable.

The report indicated:

"Nigeria’s exchange rate experienced a significant boost since December following a 2.2billion dollars Eurobond.

“Nigeria’s history of Eurobond issuances reveals a consistent pattern: brief periods of naira appreciation followed by inevitable declines."

Expect predicts N1,300 exchange rate

In a related development, the Nigerian Economic Summit Group (NESG) has projected a significant appreciation of the naira, forecasting an average exchange rate of N1,300 per US dollar in 2025.

This optimistic outlook was highlighted in its 2025 economic report, released on Thursday, January 23, 2025.

According to NESG, the projection is based on expectations of higher foreign exchange earnings, driven by increased crude oil sales, a revitalized manufacturing sector, particularly in oil refining and improved agricultural productivity.

Source: Legit.ng