Naira Hits N1,600/$, CBN Reacts, Gives Orders To Access, UBA, Others on Dollar Sale to Customers

• The value of the Nigerian currency has crashed significantly in the black market and the peer-to-peer market
• This comes despite the efforts of the Central Bank of Nigeria (CBN) to bring stability to the foreign exchange (FX) market
• Once again, the CBN has issued new instructions to Nigerian banks regarding dollar payments for customers travelling for business or schooling

Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.

he Nigerian currency continued its free fall against the US dollar in the unofficial markets on Thursday, February 5, 2025, and the situation is worsening despite the efforts of the Central Bank of Nigeria (CBN).

Legit.ng market survey showed that street traders are selling the dollar above N1,600 to willing customers ready to buy.

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This is a significant fall when compared to Wednesday's exchange rate of N1,564/$1.

The new exchange rate indicates that in less than 24 hours, the value of the naira has weakened against the greenback by N36.

The same trend is observed in the Peer-to-Peer market, another unofficial foreign exchange market mostly quoted by fintechs and crypto players.

As of the time of writing, the naira in the P2P market is exchanged at N1,613.1/$ compared to Wednesday's closing rate of N1,585/$

CBN makes another move on naira

In seeming reaction to the dollar exchange rate in the black market, the CBN has instructed banks to stop paying customers' personal and business travel allowances requests in cash.

This was contained in a circular signed by Hassan Mahmud, director of the trade and exchange department.

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Legit.ng reported that the apex bank said payments— including through debit or credit cards – will now be through electronic channels only.

CBN will be hoping that Nigerians who source cheap dollars in the official market to sell in the black market at a higher rate will no longer have access.

Nigeria Customs new exchange rate to clear goods

Earlier, Legit.ng reported that the Nigeria Customs Service adjusted the foreign exchange rate for clearing imported goods at Nigerian ports.

The new rates were intended to reflect the depreciation of the naira against the dollar across the foreign exchange markets.

With the new rate, the cost of imported goods will increase nationwide.

Source: Legit.ng