New Exchange Rate: CBN Liquidity Push Crashes Dollar Again
- The Central Bank of Nigeria’s recent measures have helped lift liquidity in the foreign exchange market
- The naira's value is currently at its strongest level in six months, both in the official and black FX markets
- After months of turbulence, the local currency is now showing signs of resilience, due largely to the CBN's reforms
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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.
There is a major change taking place in Nigeria’s foreign exchange market, both official and unofficial.
The dollar, which was initially expected to hit N1,600 again, is now close to falling below N1,500 across all FX markets.
Source: Getty Images
The latest exchange rate from the parallel market showed that the naira delivered a strong performance as the dollar crashed by N15 on Saturday, September 7.
Traders told Legit.ng that the dollar buying rate has dropped to N1,510 to N1,520, depending on the customer, while the selling rate has dropped to between N1,528 and N1,530.
Musa, a BDC trader at Airport Road, Lagos, said:
"The dollar is no longer as strong as before; it is dropping very fast. We are not making sales because most of our big customers now buy directly from the bank. Right now, we sell the dollar below N1,530, almost at the same rate as the official market.
"Meanwhile, the selling rates for the pound sterling and the euro are N2,085 and N1,775, respectively.'"
Dollar exchange rate official market
In the official market, the naira continued its strong performance against the US dollar.
Data from the Central Bank of Nigeria (CBN) showed that the currency appreciated for the fourth consecutive session, gaining N8.50 or 0.56% to close at N1,512.96/$1 compared with N1,521.46/$1 in the previous session.
Source: Getty Images
The naira also strengthened against the pound sterling by N6.88 to trade at N2,036.44/£1, from N2,043.32/£1 a day earlier, and appreciated by N10.42 against the euro to end at N1,764.21/€1 versus Wednesday’s N1,774.63/€1.
The Nigerian currency has remained relatively stable this month, supported by robust foreign exchange liquidity and a more efficient FX market.
Analysts expect sustained inflows from foreign portfolio investors (FPIs), supported by improving market confidence.
Economist Bismarck Rewane also projected long-term stability for the naira, citing rising foreign capital inflows and stronger foreign reserves.
Here is a snapshot of CBN latest exchange rates:
- CFA: N2.70
- Yuan/Renminbi: N212.13
- Danish Krone: N236.34
- Euro: N1,764.21
- Yen: N10.21
- Riyal: N403.71
- South African Rand: N85.21
- SDR: N2,069.46
- Swiss Franc: N1,880.42
- Pounds Sterling: N2,036.44
- US Dollar: N1,514.87
Forex reserves rises to $41 billion
Earlier, Legit.ng reported that Nigeria's foreign exchange reserves have climbed to $41.00 billion as of August 19, 2025, the highest level in 44 months.
Foreign reserves growth is important because it acts as a safety net for a country's economy, allowing it to stand against currency fluctuations, sudden capital outflows, or economic crises by providing readily available funds to intervene in the foreign exchange market and stabilise the domestic currency.
Source: Legit.ng
