Dollar Recovers, Sells at New Exchange Rate in Official, Black FX Markets
- The naira has recorded its first loss in days as the dollar sold at a higher rate in both the official and unofficial markets
- Checks show that the dollar rose by 0.06% in the official FX market and by N10 in the unofficial exchange market
- The fall of the naira was driven by a slight increase in demand for forex at the market window during the trading session
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.
The naira has recorded its first depreciation against the US Dollar in over a week in the Nigerian Foreign Exchange Market (NAFEM).
According to data from the Central Bank of Nigeria, the value of the naira dropped to N1,502.14/$1 after trading on Thursday, September 11.
Source: Getty Images
Thursday's exchange rate represents a 0.06% or 85 kobo application of the dollar when compared to the previous day's rate N1,501.29/$1.
Naira appreciates against pound, euro
However, in the same official market, the Nigerian currency appreciated against the Pound Sterling and the euro on Thursday.
Data shows that against the pound sterling, naira rose by N5.11 to sell for N2,029.68/£1 versus the N2,034.79/£1 it was transacted at on Wednesday.
It also appreciated against the euro by N4.28 to close at N1,755.09/€1 compared with the preceding day’s N1,759.37/€1.
Naira also fell to the dollar in the black market
In the parallel market segment, the naira also recorded a N5 depreciation against the Dollar on Thursday.
Abdullahi a trader told Legit.ng that the dollar selling rate rose by N5 on Wednesday.
He said:
"“Dollar: N1,523 buy, N1,533 sell; Euro: N1,770 buy, N1,783 sell; Pound: N2,065 buy, N2,080 sell.”
Source: Getty Images
Why naira fell against the dollar in all markets
The naira weakened against the dollar in the official market on Thursday, pressured by increased demand for foreign exchange from corporates and other market participants, despite the relative stability the currency had maintained over the past two months.
Analysts expect the naira to trade between N1,500 and N1,550 in the coming weeks, supported by stronger FX liquidity and a more efficient forex market.
Sustained inflows from foreign portfolio investors (FPIs) and decisive policies by the CBN are also anticipated to curb speculation, with banks and other providers offering more competitive rates.
Meanwhile, Nigeria’s foreign reserves rose to $41.624 billion on Wednesday.
Rewane predicts naira to dollar rate by December 2025
Earlier, Legit.ng reported that Bismarck Rewane, the Chief Executive Officer of Financial Derivatives Company, has projected that the naira will close at N1,492/$ in 2025.
The positive outlook, he said, is driven by the domestication of corporate debt, diaspora inflows and remittances, and a likely Eurobond issuance.
These factors are expected to improve dollar supply and reduce pressure on the exchange rate.
Source: Legit.ng
