Traders Sell At New Exchange Rate As Dollar Crashes by Over N100 in Black Market
- The United States dollar has dropped in value by over N100 in the last month in the unofficial markets
- The naira's strong performance in 2025 is its strongest rally in 13 years, mirroring an early surge in 2024
- The CBN introduced various policies in the last month, which have helped the naira improve in value
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 has strengthened against the U.S. dollar in the parallel market, also known as the black market.
Information obtained from street traders showed the dollar on Monday, February 17, sold at an N1,550 exchange rate.
Source: Getty Images
The new exchange rate is a huge improvement from the N1,665 rate at the start of the month in the black market. This indicates a gain of N115 for the naira in February 2025.
Abudulahii, a trader, told Legit.ng:
"There is no much activity, demand for dollar fro us has reduced as there are more dollars available.
"We are buying dollars for N1,535 and selling at N1,550"
Another trader, who gave his name as Musa, added:
"We are patiently waiting as the market is not favorable for us now, especially for those of us who bought at a higher rate before the dollar fell."
Naira to dollar official market
It is a similar story for the dollar at the official market, as the Nigerian currency strengthened by 1.8% between January and February 2025.
The latest data from the Central Bank of Nigeria (CBN) showed that as of Friday, the naira gained N27.50, and the dollar traded at N1,511, down from N1,538.50 at the start of the month at the Nigerian Foreign Exchange Market (NFEM).
On a day-on-day basis, the local currency closed flat at N1,512 on Monday, compared to N1,511 on Friday and N1,515 on Thursday at NFEM.
Dealers quoted the highest rate at N1,515 on Monday, slightly below N1,520 on Friday. The lowest rate recorded was N1,504 on Monday, compared to N1,500 on Friday and N1,501 on Thursday.
Forex reserves fall below $40bn
Amid the naira's gain, Nigeria’s external reserves have continued to decline as the CBN looks to clear all forex debts.
Data obtained from the apex bank revealed that foreign reserves dropped to $39.09 billion as of February 13, 2025, from $40.88 billion at the beginning of the year.
With Nigeria's oil production rising, it is expected that the current level of reserves will improve, giving the CBN more firepower to defend the naira's value.
Customs exchange rate changes
Legit.ng reported that the Central Bank of Nigeria has revised the Customs exchange rate for clearing goods at the nation's ports and airports.
The latest data reveals that the new rate represents a slight increase from the previous one.
The import duty exchange rate aligns with the naira's performance in the official foreign exchange market.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
