New Exchange Rate As Dollar Appreciates in Official, Black Markets

• The dollar recovered against the Nigerian currency in both the official and unofficial exchange markets
• The latest data shows that the naira appreciated slightly in the official market and by N10 in the black market
• The new exchange rate is a small setback in the CBN's push to help the naira recover in the FX markets

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 depreciated against the United States dollar in the foreign exchange market.

According to data from the Central Bank of Nigeria (CBN) closed at the Nigerian Autonomous Foreign Exchange Market (NAFEM) at N1,500.73/$1.

Friday's exchange rate is a loss of 0.12% or N1.73 when compared to the N1,499.00/$1 reported on Thursday.

However, the Nigerian currency appreciated against the British pound sterling by N17.78 to settle at N1,880.69/£1 versus Thursday’s closing value of N1,898.47/£1.

Read also

Naira’s gain: CBN crashes dollar for importers, releases new exchange rates for cargo clearance

While it gained N19.93 on the euro to sell for N1,552.94/€1, in contrast to the preceding session’s N1,572.87/€1.

Here is a snapshot of the naira exchange against the dollar

• CFA – N2.3887
• Yuan/Renminbi – N204.89
• Danish krona – N208.18
• Euro – N1,552.93
• Riyal – N397.84
• South African rand – N80.77
• SDR – N1,959.9392
• Swiss franc – N1,653.3632
• Pounds sterling – N1,880.68

Naira performance in the black market

Also, the naira depreciated in 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 N1,510 and bought it at N1,495 this is a N15 difference from previous day's rate.

"While the pound and euro were sold at N1,900 and N1,570, respectively."

Expectations for the naira

Meanwhile, the Association of Bureau De Change Operators of Nigeria (ABCON) has urged lawmakers to exempt foreign exchange transactions from excise taxes, warning that the levy could heighten exchange rate volatility and inflation.

Read also

CBN releases new exchange rates for naira against dollar, pound, euro

Speaking at a House of Representatives Public Hearing on the Tax Reform Bill in Abuja on Thursday, ABCON President Aminu Gwadabe, represented by the Chairman of the North Central Zone, Thomas Okoye, said imposing an excise tax on transactions by licensed bureaux de change (BDCs) would be counterproductive, Punch reports

Gwadabe said:

“The policy lacks clarity as the excise tax is on parallel market activities. It will be transferred to end users; it would worsen inflation as we depend highly on importation."

Nigeria's foreign reserves drop

Legit.ng previously reported that the Central Bank of Nigeria disclosed that Nigeria's foreign reserves had dropped below $40 billion.

This latest figure is $2.2 billion when compared to the $40.88 billion the reserves stood at at the beginning of January 2024.

The current balance is the first time that Nigeria's reserves fell below $39 billion in 2025 amid moves by the CBN to clear forex obligations to avoid pressure on the naira.

Source: Legit.ng