Again, Naira Crashes As Traders Sell Dollar at New Exchange Rate

• The value of the naira has depreciated again in the foreign exchange market against the US dollar
• Data on Tuesday shows that the Nigerian currency suffered losses both in the official and unofficial foreign exchange markets
• The Central Bank of Nigeria has conducted FX intervention, selling $50 million to authorised dealer banks

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.

Nigerian currency, the naira, continued its performance against the United States dollar this week in both the official and black foreign exchange markets.

Data from the Central Bank of Nigeria, the Nigerian Foreign Exchange Market (NAFEM) naira closed at N1,590/$1 on Tuesday, May 27.

Tuesday's exchange rate is a 0.4% or N7 depreciation compared to N1,583/$1 recorded on Monday.

During trading on Tuesday, the dollar was sold as high as N1,591 o the dollar and as low as N1,581.9/$.

Naira against pound, euro currencies

The naira's poor performance continued against the British pound and the euro in the official foreign exchange market.

The naira depreciated against the pound sterling in the official market yesterday by N1.91 to close the session at N2,143.90/£1 compared with Monday’s closing price of N2,141.99/£1.

While against the euro, it lost N5.85 to quote at N1,797.22/€1 compared with the previous day’s N1,791.37/€1.

Naira in the black market

Also, in the black market, checks by Legit.ng show that the naira depreciated against the US dollar.

BDC traders told Legit.ng that the naira fell by N2 after the day's trading.

A BDC trader, Abdullahi, explained to Legit.ng the state of the naira in the black market.

"The market is experiencing a bit of pressure. On Tuesday, we sold dollars at N1,615/$1 from the previous rate of N1,610/$1. While the euro and pound remain at N1800/€1 and N2150/£1r respectively.

CBN sells dollars to dealers

Meanwhile, in a push to help the naira recover, the CBN conducted FX intervention, selling $50 million to authorised dealer banks on Tuesday within the ranges of N1,581.92 to N1,585.00.

The latest round of FX intervention came as the impact of $190 million supplied to the currency market last week began to fizzle out.

Forex reserves drop

Earlier, Legit.ng reported that Nigeria’s foreign exchange reserves have maintained a downward trend, declining by 3.3% month on month.

The latest data from the Central Bank of Nigeria (CBN) shows that the reserves dropped from $39.72 billion on 31st January to $38.42 billion by 28th February 2025.

This shows a decline of about $1.31 billion within one month, showing major challenges for the country despite the recent naira appreciation and recovery.

This is a continuation of the decline already seen in January 2025, when foreign reserves went down by $1.16 billion.

Source: Legit.ng