Naira Bounces Back, Appreciates Against US Dollar in Official Market

• The value of the naira appreciated against the US dollar in both the official and unofficial foreign exchange markets on Wednesday
• The new exchange rate marks a reversal from the depreciation recorded at the close of trading on Tuesday
• The Central Bank of Nigeria’s recent intervention in the FX market has led to a decline in the country’s gross foreign reserves

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 the Nigerian currency appreciated against the United States Dollar in the foreign exchange market.

Data from the CBN showed that the Nigerian Foreign Exchange Market (NFEM) ended trading on Wednesday, April 16, at N1,599 a dollar.

Wednesday's exchange rate is a 0.31% depreciation for the naira compared to Tuesday's exchange rate of N1,604

However, the Nigerian currency fell stable against the British pound sterling at the spot market during the session at N2,121.97/£1 compared to the previous day's rate of N2,115.26/£1.

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Similarly, the naira fell to the euro to N1,818.17/€1 from N1,808.89/€1 it closed on Tuesday.

The NAFEM window recorded an inflow of US$847mn compared to US$795mn from the previous week. The CBN accounted for 22.87% of the total inflow,

Foreign portfolio investors (FPIs) 32.26%, non-bank corporates 22.0%, exporters 17.97%, while other sources accounted for 4.90.

Naira falls against at black market

In the parallel market, also known as the black market, it was a different story for the naira against the dollar, euro, and pounds.

Traders who spoke to Legit.ng confirmed that the dollar depreciated against the naira.

"We sold the dollar at N1,612/$1 on Wednesday, compared with the N1,616/$1 it was exchanged on Tuesday. But, the British pound fell to an exchange rate of N2100, and the euro was at N1,800."

Here is a snapshot of naira rate vs other currencies on Wednesday

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Naira appreciates against US dollar in official market

• CFA: N2.76
• Yuan/renminbi: N218.94
• Danish krona: N243.45
• Euro: N1818.17
• Yen: N11.22
• Riyal: N426.33
• South African rand: N84.81
• Swiss franc: N1963.43
• Pounds sterling: N2121.97

FX reserves drop

According to data from CBN, the gross foreign reserves decreased by 0.32% w/w to close at US$38.03bn as of April 10, 2025.

CBN intervenes in the forex market

Ealier, Legit.ng reported that the depreciation of the naira in the official and unofficial foreign exchange markets, the CBN has pumped $197.71 million to authorised dealers.

The intervention comes as the naira has suffered a sharp decline, dropping 2.3% over just three days.

The CBN’s decision to step in marks its first intervention of 2025 and this may continue if market conditions continue to deteriorate.

The CBN’s intervention, announced in a statement by Omolara Omotunde Duke, director of the bank’s financial markets department, is aimed at improving liquidity and maintaining stability in the market.

Source: Legit.ng