CBN Speaks As Naira Crashes Against US Dollar, Traders Sell at New Exchange Rate

• The Nigerian currency has once crashed against the US dollar in both official and unofficial foreign exchange markets
• The latest exchange rate movement is a reversal from the naira's performance in the past few weeks
• The CBN has reiterated that its policies are working to improve the value of the naira against other currencies

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, witnessed another depreciation against the US dollar in the official and unofficial foreign exchange market.

New data showed that the naira in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, March 25, 2025, closed at N1,533.66/$1

The latest rate represented a 0.09 per cent or N1.37 difference when compared to the previous day’s value of N1,532.29/$1.

Also, the Nigerian currency weakened against the British pound sterling on Tuesday in the official market by N4.62 to quote at N1,985.37/£1 compared with Monday’s closing price of N1,980.75/£1.

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Similarly, the naira crashed against the euro in the same market segment by N3.29 to finish at N1,659.12/€1, in contrast to the preceding session’s N1,655.83/€1.

At the parallel market window, the naira also reduced in value against the dollar.

Abudullahi, a trader, told Legit.ng:

"The naira fell to N1,575, a N5 difference from yesterday's selling of N1,570/$1. For pound sterling it remained at N2,205 while euro sells for N1,675."

CBN praises efforts

The domestic currency has been volatile in the past trading days despite moves by the Central Bank of Nigeria (CBN) to sustain FX liquidity to ease the pressure on the naira.

However, Olayemi Cardoso, the Governor of the CBN, has lauded the reforms being carried out by his team to restore confidence in the Nigerian economy.

Speaking when a delegation of scholars from the Harvard Kennedy School visited him at the CBN headquarters in Abuja, he said the strategies put in place by the apex bank to stabilise the foreign exchange (FX) market and curb inflation in the country were already yielding positive results.

Read also

Naira continues free fall despite CBN intervention as demand for foreign exchange increases

A statement from CBN said:

“Mr Cardoso acknowledged recent challenges but highlighted progress in stabilising the foreign exchange market and curbing inflation.

“As we reset the bank, we are committed to being a hub for thought leadership. The exposure you gain from institutions like Harvard is invaluable, and we see this as an opportunity to build long-term alliances."

Foreign reserves drop

Earlier, Legit.ng reported that Nigeria’s foreign exchange reserves declined in the last 33 days straight by almost $2 billion.

The reserves decline came as the Central Bank of Nigeria (CBN) amid efforts by the CBN to stabilise the naira.

The naira in recent weeks has improved in value against the dollar and other major currencies in the official and black market.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng