Traders Quote New Exchange Rates As Naira Falls Against US Dollar, Pound, Euro at Black Market

• The value of the naira has dropped once again against the US dollar in the unofficial foreign exchange markets
• There were also changes in the exchange rates for the British pound and the euro as crude oil prices crashed
• The Central Bank of Nigeria relies on oil sales to secure enough foreign currency to defend the naira from further pressure

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, has depreciated against the United States dollar and other foreign currencies.

Legit.ng spoke to several Bureau de Change operators, who confirmed that the value of the naira has dropped by N10, with the buying and selling rates now exceeding N1,600.

Abudullahi, one of the BDC traders, told Legit.ng:

"The dollar buying rate is N1,600, while the selling rate is N1,610. Previously, the buying rate for a dollar was N1,590.

The euro sells at N1,800, and we buy at N1,780. The British pound sterling is selling at N2,140, with a buying rate of N2,120."

Naira falls in the official market

The naira continued its decline against the US dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday, May 5, 2025, slipping by 0.2 per cent or N4.22 to close at N1,606.91/$1, compared to N1,602.69/$1 in the previous trading session.

The local currency also depreciated against the British pound, losing N4.43 to trade at N2,137.73/£1, down from Friday’s rate of N2,133.30/£1. Similarly, it fell against the euro by N1.51, settling at N1,821.75/€1 from the previous rate of N1,820.24/€1.

The pressure on the naira in the spot market was driven by increased demand for foreign exchange amid a slowdown in forex supply from the Central Bank of Nigeria (CBN).

The drop in oil prices has put CBN in a more challenging position as the sale of crude oil provides the needed firepower to defend the naira against demand pressures.

Here are other currencies' exchange rates

The CBN also provided the updated currency exchange rate changes below:

• CFA: N2.76
• Yuan/Renminbi: N220.79
• Danish Krona: N244.11
• Euro: N1821.75
• Yen: N11.17
• Riyal: N428.10
• South African Rand: N87.79
• Swiss Franc: N1951.66
• Pounds Sterling: N2137.73

Tanzania bans use of dollar

Earlier, Legit.ng reported that the Bank of Tanzania officially banned the use of foreign currencies, including the dollar, for local transactions and payments within the country.

With the ban, all goods and services in Tanzania must now be priced and paid for strictly in Tanzanian Shillings.

In a public notice, the central bank announced that all goods and services in Tanzania must now be priced and paid for strictly in Tanzanian Shillings.

The notice, signed by Bank of Tanzania Governor Emmanuel M. Tutuba, clarified that while certain transactions involving foreign currency were still allowed under the new rules.

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

Source: Legit.ng