Naira Crumbles in Official Market, Traders Quote New Exchange Rate for Dollar

• Nigerian currency has recorded a depreciation against the US dollar in the foreign exchange markets
• New data from CBN showed that the value of the naira dropped in both the official and unofficial markets
• In the first six months of 2025, the Central Bank of Nigeria spent over $1.4 billion to defend the naira's value

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, depreciated slightly against the United States dollar in the official market.

According to Central Bank of Nigeria data, the naira in the Nigerian Foreign Exchange Market (NFEM) recorded a closing rate of N1,533.22/$1 at the end of trading on Thursday, July 17, 2025.

Thursday's exchange rate was a N3.26 or 0.21% depreciation from the previous closing price of N1,529.96/$1.

Equally, the Nigerian currency weakened against the British pound sterling in the official FX market during the trading session by N2.76 to close at N2,056.52/£1 compared with the previous day’s rate of N2,053.76/£1.

However, the naira appreciated against the euro by N2.81 to finish at N1,776.42/€1, in contrast to the N1,779.23/€1 it was traded on Wednesday.

In the black market, the US dollar exchange rate improved slightly after days of depreciation against the US dollar.

Abdullahi said:

"We sold the dollar at N1,537/$1 on Thursday compared with the N1,535/$1 it was exchanged on Wednesday. Euro is sold at N1,780 and N2,125."

Snapshot of naira's rates in official market

Based on CBN published rates, here is a breakdown of the naira's performance against other foreign currencies in the NAFEM market.

• CFA Franc: N2.71
• Chinese Yuan (Renminbi): N213.39
• Danish Krone: N237.99
• Euro: N1,776.42
• Japanese Yen: N10.32
• Saudi Riyal: N408.71
• South African Rand: N85.86
• Swiss Franc: N1,903.78
• British Pound Sterling: N2,056.52

How did the market perform?

The development on Thursday came amid increased demand for foreign exchange, despite indicators suggesting that the country’s reserves could strengthen, supported by improved crude oil output, rising foreign portfolio investment (FPI) inflows, and a slowdown in import-related outflows

According to CSL Stockbrokers' H2 2025 Outlook report, the Central Bank of Nigeria (CBN) injected a total of $4.1 billion into the foreign exchange market during the first half of 2025 to stabilise the naira and ease liquidity pressures

This represents a 215% increase compared to the $1.3 billion injected in the same period of 2024.

However, analysts at CSL raised concerns about the sustainability of this currency defence strategy, pointing to weak oil revenues, muted FPI inflows, and ongoing uncertainties surrounding external financing

Over 3m BDC operators face shutdown

Earlier, Legit.ng reported that the Association of Bureau De Change Operators of Nigeria (ABCON) warned that three million Nigerians might lose their livelihoods if Bureau De Change Operators (BDCs) shut down due to their inability to meet the new capital requirements.

ABCON President Aminu Gwadebe disclosed that fewer than 10% of BDCs have met the recapitalisation threshold. He also criticised the CBN for not enforcing policies that would support BDCs.

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

Source: Legit.ng