New Exchange Rate As Dollar Crashes to Six-Month Low Against Naira
- The value of the naira has improved to its highest level in six months, latest data from the Central Bank of Nigeria showed
- The recent movement of the naira means international payments and imports are now less expensive
- Budget Office DG, Tanimu Yakubu, said the naira strengthened by 15.28% in five months to N1,525/$ by August 2025
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Naira has strengthened to a six-month high on Monday, September 1, 2025, thanks to increased inflows from non-bank corporates that lifted liquidity in the official foreign exchange (FX) market.
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According to data from the Central Bank of Nigeria (CBN) in the official market, the naira closed at N1,526.09 per dollar on Monday, gaining 0.4% from N1,531.57 quoted on Friday.
The last time the local currency traded near this level was on July 14, 2025, when it exchanged at N1,518.73 per dollar.
At the parallel market, the naira was unchanged at N1,540 per dollar, where it has held steady since August 25.
It was also the same for the naira against the euro as it appreciated, gaining N1.97 to close at N1,787.21/€1 from N1,789.18/€1.
However, it weakened against the pound sterling by N2.08, settling at N2,066.33/£1 compared with N2,064.25/£1 in the previous session.
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Forex inflow increases
Turnover at the Nigerian Foreign Exchange Market (NFEM) stood at $706.70 million, lower than $751.70 million in the previous week.
Coronation Merchant Bank reported that non-bank corporates accounted for the largest inflows at $250 million, representing 35.38% of the total. Foreign portfolio investors (FPIs) followed with $198.30 million (28.06%), while exporters contributed $145.10 million (20.53%).
The Central Bank of Nigeria (CBN) injected $88.50 million (12.52%), and inflows from individuals and other sources made up 0.81% and 2.70%, respectively.
Also, external reserves rose by $161.06 million, or 0.46% week-on-week, to $41.27 billion, CBN data showed.
In August, the naira recorded a marginal gain against the dollar, supported by higher reserves and stronger inflows from FPIs and diaspora remittances.
The currency ended the month at N1,531.57 in the official market, reflecting improved liquidity conditions.
FG says dollar crash not luck
Earlier, Legit.ng reported that Tanimu Yakubu, the director-general of the Budget Office of the Federation, said the naira had appreciated by 15.28% over the past five months to N1,525 per dollar in August, equivalent to an annualised pace of nearly 48.9%.
He noted that the rise in the naira’s value and the dollar’s decline was not due to luck but to policy measures, citing increased oil receipts, swelling diaspora remittances, and the clearance of over $4 billion in foreign exchange backlogs, which restored investor confidence.
He added that the unification of Nigeria’s FX windows created a single, transparent market rate that allowed the currency to find its realistic value.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
