New Exchange Rate as Dollar Crashes Again in Official, Black Forex Market
- Traders sold the dollar at a lower exchange rate in both the official and unofficial exchange markets
- The latest data shows that the naira appreciated slightly by 53 kobo in the official market and by N15 in the black market
- Ayo Teriba, chief executive officer of Lagos-based research firm Economics Associates, has stressed that the naira at N1,500 is nothing to celebrate
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 value of Nigerian currency has improved against the United States dollar in the foreign exchange market.
According to data from the Central Bank of Nigeria (CBN), the naira against the US dollar on Tuesday, Feb 18, sold for N1,509.57/$1 at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Source: Getty Images
Tuesday's exchange rate is 0.04% or 53 Kobo appreciation when compared to the preceding day’s N1,510.10/$1 rate.
The naira also improved against the British pound sterling and the euro in the official foreign exchange markets.
Data showed that the Nigerian currency improved its value against the pound sterling by 21 kobo during the session to sell at N1,900.46/£1 compared with the previous day’s N1,900.67/£1.
While against the euro, it gained N7.38 to quote at N1,576.10/€1 versus Monday’s closing price of N1,566.23/€1.
Naira exchange rate against other currencies
- CFA: N2.41
- Yuan/Renminbi: N207.02
- Danish Krona: N211.27
- Euro: N1,576.10
- Yen: N9.93
- Riyal: N401.87
- South African Rand: N81.86
- Swiss Franc: N1,671.53
- Pounds Sterling: N1,900.46
Naira performance in the black market
Also, the naira improved its value against the dollar in the parallel market, known as the black market.
Traders who spoke to Legit.ng confirmed that the dollar crashed by N15 on Tuesday.
Abdullah, a BDC trader, revealed:
"We sold the dollar at N1,528 and bought it at N1,510, this is a N15 improvement from previous day's rate.
"While the pound and euro were sold at N1,910 and N1,585, respectively."
The latest exchange rate means that the black market and official market exchange rate gap is now less than N30.
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.
Expert speaks on naira exchange rate
Reacting to the performance of the naira, Ayo Teriba, chief executive officer of Lagos-based research firm Economics Associates, has said the newfound stability of the naira is nothing to be overly excited about.
He noted that the naira at 1,300/$ in April could have been said to be “encouraging” compared to an average of N1,500/$ obtainable today, BusinessDay reports.
Nigeria's foreign reserves drop below $40bn
Legit.ng reported that the Central Bank of Nigeria disclosed that Nigeria's foreign reserves had dropped below $40 billion as of Monday, February 17, 2025.
The reserves give the CBN the firepower to ensure the stability of the naira in the forex market.
The central bank will be hoping to replenish the reserves through revenue from crude oil sales.
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Source: Legit.ng
