CBN Releases New Official Exchange Rates As Naira Appreciates Against US Dollar in Black Market
- There is a new exchange rate in the official and unofficial foreign exchange markets after Friday's trading
- Checks show that while the naira appreciated in the black market, it depreciated against the dollar in the official market
- In the new week, there are expectations that the naira will recover due to the availability of forex in the official 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, recorded a strong performance against the US dollar in the black market but fell in the official market this past week.
Checks by Legit.ng show that the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, February 14, closed at N1,510.10/$1 to the US dollar.
Source: Getty Images
Friday's exchange rate saw a slight depreciation against the US dollar compared to the previous day’s closing rate of N1,510.00/$1.
The naira, however, appreciated against the pound sterling in the official market, closing at N1,879.42/£1, reflecting a loss of N7.32 compared to the previous session’s rate of N1,872.42/£1.
Similarly, the naira weakened against the euro, closing at N1,566.23/€1, which represents a loss of N6.27 from Thursday’s closing rate of N1,559.96/€1.
Naira improves against dollar at black market
In the parallel market, also known as the black market, it was a different story as the Nigerian naira appreciated.
Traders who spoke to Legit.ng confirmed that the U.S. dollar was sold to Nigerians at an exchange rate of N1,565/$1.
The rate indicates N5 appreciation, as the dollar was sold at N1,570/$1 the previous day.
Some other BDC operators were also quoting the dollar at a selling rate of N1,550 and a buying rate of N1,445.
Snapshot of naira rates in official market
Based on CBN published rates, here is a breakdown of naira's performance against other foreign currencies in the NAFEM market.
- 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: 1879.42
ABCON lists reasons for naira's appreciation
The Association of Bureau de Change Operators of Nigeria (ABCON) has spoken about the recent increase in the value of the naira against the US dollar in the official exchange market.
ABCON president, Aminu Gwadabe, said the naira’s strength proves that the Central Bank of Nigeria’s (CBN) policies and foreign exchange reforms are effective.
He noted that the currency has been gaining value in both official and parallel markets, reaching N1,485 per dollar in the official market—the highest in seven months.
He added that the naira also improved in the parallel market, rising to N1,610 per dollar. This, according to him, has increased confidence in the ongoing forex reforms.
Gwadabe explained that the naira’s recovery is due to factors such as the newly introduced foreign exchange code, improved investor confidence, more investment in the oil and gas sector, and better management of diaspora remittances to enhance liquidity and transparency in the forex market.
He also stressed that supporting Bureau De Change operators would further strengthen the naira against the dollar.
ABCON predicts brighter future
Aminu Gwade, president of the Association of Bureau De Change Operators of Nigeria (ABCON), has highlighted that the effective implementation of the Central Bank of Nigeria’s (CBN) forex policy on the sale of interbank/EFEM proceeds to BDCs has contributed to the naira’s recovery.
In a statement, he said:
"The gradual implementation of the sale of interbank/EFEM proceeds to BDCs by banks has led to a significant appreciation of the naira in the market today. This development highlights the effective transmission mechanism of the CBN’s foreign exchange policy reforms through the BDCs.
"We, therefore, commend the CBN, the Federal Government, and Nigerians in general as the naira is trading between N1,540/$ and N1,545/$ today, 14 February 2025."
Customs exchange rate changes
Legit.ng reported that the Central Bank of Nigeria has adjusted the Customs exchange rate for clearing goods at the nation's ports and airports.
The latest data shows that the new exchange rate represents a slight increase from the previous rate.
The import duty exchange rate reflects the performance of the naira in the official foreign exchange market.
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Source: Legit.ng
