Naira Depreciates in Official Window, Gains in Black Market Amid FX Reserves Decline

• The Nigerian currency, the naira, suffered a setback in the foreign exchange market on Friday, June 13, 2025
• The naira paused its 9-day winning streak as dollar demand returned, causing a slight dip in the local currency
• Also, Nigeria’s foreign exchange reserves declined to $38.33 billion, contributing to the naira’s depreciation

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian currency, the naira, paused its 9-day winning streak on Friday, June 13, 2025, as demand for the US dollar spiked at the Nigerian foreign exchange markets (NFEM).

Data from the Central Bank of Nigeria (CBN) shows that the exchange rate fell by N10 to N1,549.35 in the official market from N1,539.79 at the previous rate.

CBN sells $580m to authorised dealers

The FX market experienced some US dollar demand after nine days of gains against the US currency.

Legit.ng earlier reported that the apex bank spent $580 million to defend the local currency in May, and there were no inflows from other areas, including exporters' supply.

Market Forces Africa said that some international oil companies’ dollar flows also contributed to average daily inflows, while the CBN was crucial in directing the spot rate with forex intervention.

Nigeria’s FX Reserves fall

However, Nigeria’s external reserves accretion dipped, with the gross balance of the country’s US dollar reserves settling at $38.33 billion amid uncertainties in the oil market.

Information showed that Bonny Light crude rose slightly during the period, caused by strong demand for Nigeria’s light sweet crude amid the Middle East tensions.

Bonny Light crude saw a 1.31% climb monthly in May 2025, to settle at $65.73 per barrel, while the average price remained at $65.90 per barrel over the period.

Forex Treasury dropped further to $38.020 billion as of Friday, June 13, 2025, following a series of outflows which supported CBN’s FX interventions.

FX inflows into Nigeria rise

The development comes as Foreign exchange inflows into Nigeria rose by 62% per month to $5.96 billion in May 2025, as the Nigerian currency, the naira, appreciated to N551 per dollar due to renewed investor confidence and robust domestic participation in the FX market.

FMDQ data shows that the rise in total inflows, which rose from $3.67 billion in April, was caused by a significant increase in contributions from local sources, which accounted for 83.2%.

Importers and exporters contribute to inflows

Domestic inflows rose to a six-year high of 64.2% to $4.96 billion, driven by increased activities from exporters and importers, non-bank corporates and individuals.

According to the data, inflows from exporters and importers surged to $3.11 billion, a sharp rise from $655.7 million in April 2025.

Experts say that the renewed interest from investors is due to CBN’s monetary policies and sustained OMO sales, which have continued to offer alternative yields.

CBN crashes the dollar for importers

Legit.ng earlier reported that the CBN has slashed the Customs foreign exchange rate for cargo clearance at Nigeria’s sea and airports.

The development comes amid the appreciation of the Nigerian currency, the naira, in the Nigerian Foreign Exchange Market (NFEM).

The naira has been on a bullish run since the beginning of June, briefly pausing gains on Wednesday, June 11, 2025, closing at N1,540 per dollar.

Source: Legit.ng