Access, Zenith, UBA, Other Sell Dollar at New Rates as Naira Depreciates Again

• The naira has depreciated again in the foreign exchange market, after a bullish run last week following interventions by the Central Bank of Nigeria (CBN)
• On Wednesday, June 18, 2025, the Nigerian currency depreciated to N1,550 per dollar from N1,547.50
• Experts attributed the naira’s fall to the drop in crude oil prices and the decline in Nigeria’s foreign exchange reserves

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

The Nigerian currency dropped in value for the second consecutive day in the official foreign exchange market.

The new development has thrown currency pundits off course after predicting the local currency's gain in the wake of the Israeli-Iranian war.

Crude oil prices fall

The naira, which surged against the dollar last week, witnessed renewed volatility as crude oil prices subsided amid rumoured talks between Israel and Iran.

According to new data, global benchmark crude fell on Wednesday, June 18, 2025.

Brent Crude fell by 0.15% to $73.30 per barrel, and West Texas Intermediate (WTI) dropped by 0.02% to $74.82, while Murban crude rose by 0.21% to close at $76.44 per barrel.

Analysts say the fall will negatively impact Nigerian foreign exchange reserves and the naira in the long run.

Nigerian blend, Bonny Light, dropped 2.30% to sell for $78.62 per barrel.

Meanwhile, information from the Nigerian Foreign Exchange Market (NFEM) shows that the naira fell to N1,550.90 per dollar, down from N1,547.50 it traded the previous day.

The naira depreciates

The dollar’s intra-day high hit N1,551 to a dollar and an intra-day low of N1,547.50.

The move signals the return of volatility in the Nigerian foreign exchange market.

Legit.ng reported that the Central Bank of Nigeria (CBN) sold $580 million in May 2025 to defend the local currency.

Analysts say that the CBN intervention was the reason for the naira’s bullish run in the FX market for most of May.

CBN’s interventions prop up the area’s value

Data showed Nigeria’s gross external reserves declined to $38.045 billion in May, showing the apex bank’s aggressive intervention in the FX markets.

The intervention supported the local currency’s rally but raised concerns over long-term sustainability and a negative effect on reserves.

To ensure the naira’s stability amid rising demand for dollars for foreign payments, the apex bank has continued to sell forex to authorised dealer banks.

According to AIICO Capital Limited, in May 2025, the FX market traded with volatility but was relatively stable, supported by continued interventions and improved liquidity.

Experts disclosed that in early May, falling oil prices and continued FX demand pushed the naira to an intraday high of N1,614 per dollar, but due to subsequent interventions of about $580 million, the FX market moderated.

CBN releases new exchange rate

Legit.ng earlier reported that the Nigerian currency has depreciated against the US dollar after opening the week positively on Monday, June 16, 2025.

The naira’s fall on Tuesday, June 17, 2025, raises concerns over renewed volatility in the forex market.

Experts have predicted an appreciation of the local currency following the surge in crude oil prices caused by the Middle East tensions.

Source: Legit.ng