Naira Reverses As Dollar Exchange Rate Rises in Forex Markets
- Naira depreciated against the US dollar in both the official and unofficial foreign exchange markets
- CBN data showed that the naira fell marginally in the official market and by N5 in the unofficial market, according to traders’ reports
- This decline comes as a new report showed that forex inflows into Nigeria have dropped, while the CBN sold over $500 million
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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 depreciated against the US dollar, eroding the recent exchange rate appreciation recorded earlier this week.
The Central Bank of Nigeria reports that in the Nigerian Foreign Exchange Market (NFEM), the official market, the naira fell to N1,499.64 per dollar on Thursday, September 18, 2025.
This represents a N4.89 or 0.33% drop in value when compared to Wednesday’s rate of N1,494.75.
Source: Getty Images
The latest price movement now means the local currency has recorded losses for the second consecutive session.
Similarly, the naira against the pound sterling weakened by N9.17 to N2,036.06/£1 from N2,026.89/£1, and lost N11.99 against the euro to trade at N1,766.54/€1 from N1,754.55/€1.
In the parallel market, the Nigerian currency shed N5 against the greenback to settle at N1,510/$1, down from N1,505 the previous day.
Why did naira depreciate against US dollar?
The fall of the naira has been attributed to pressure in the market and drop in FX inflows.
FMDQ Securities reported that total inflows into Nigeria’s foreign exchange market dropped by 10.5% month-on-month to $3.4 billion in August 2025 down from $3.8 billion in July, when inflows had risen 24% compared with June.
The decline in August was primarily driven by reduced foreign portfolio inflows (FPIs) to $1.1 billion from $1.7 billion in the previous month.
The CBN sold $574 million in August 2025 to stabilise the foreign exchange (FX) market, BusinessDay reports.
Analysts, however, noted that stronger inflows from foreign reserves, oil earnings, and offshore investors expected at the next OMO auction could offer support in the near term.
Source: Getty Images
Official exchange rates
- CFA: N2.70
- Yuan/Renminbi: N210.89
- Danish Krona: N236.61
- Euro: N1766.54
- Yen: N10.13
- Riyal: N399.67
- South African Rand: N86.25
- SDR: N2065.14
- Swiss Franc: N1892.41
- Pounds Sterling: N2036.06
- US Dollar: N1498.98
CBN MPC members speaks on naira's future
Earlier, Legit.ng reported that at the just concluded Monetary Policy Committee meeting, members shared their thoughts on the recent movement.
They all agreed that the naira’s recent stability reflects improved confidence and reforms in the foreign exchange market.
Emem Usoro, one of the members, said the naira’s appreciation is backed by higher market turnover and growing investor confidence, has reinforced inflation expectations.
While Aku Pauline Odinkemelu attributed naira gains to tighter liquidity and reforms that reduced speculative activity in the FX market.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
