Dollar Falls Against Naira, Exchanges at New Rate as World Bank Advises CBN

• The naira has recovered against the US dollar in the official and unofficial foreign exchange markets
• The latest performance follows the eased pressure on the local currency, following an imbalance of forex demand and supply
• The World Bank has shared its observation about the naira performance and how to sustain the gains

Dave Ibemere is a Legit.ng journalist with over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and market trends.

The Nigerian currency has shown another strong performance against the US dollar in the foreign exchange (FX) market as demand pressure eased.

The Central Bank of Nigeria (CBN) data showed that the naira strengthened against the US dollar in the Nigerian Foreign Exchange Market (NFEM) on Thursday, October 9, to close at N1,466.65/$1.

The rate is N3.97 or 0.27% appreciation when compared to N1,470.62/$1 recorded a day earlier.

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The Nigerian currency also gained N14.57 against the British pound to close at N1,960.62/£1, compared with N1,975.19/£1 on Wednesday.

Similarly, the naira appreciated by N9.32 against the euro, settling at N1,702.19/€1 versus N1,711.51/€1 previously.

At the same time, data from GTBank showed that the exchange rate at the bank remained unchanged at N1,478/$1 on Thursday.

Naira vs dollar black market

In the unofficial market, the naira gained against the US currency in the black market on Thursday.

Traders told Legit.ng that the dollar was sold to N1,485/$1, a slight improvement from N1,490 quoted during the midweek session.

Abudullahii, a BDC trader, said:

"Yes, we sold the dollar at a lower rate due to reduced demand."

Here is the latest exchange rate snapshot

• CFA: N2.61
• Yuan/Renminbi: N205.89
• Danish Krona: N227.90
• Euro: N1,702.20
• Yen: N9.60
• Riyal: N391.01
• South African Rand: N85.78
• Swiss Franc: N1,824.4
• Pound Sterling: N1,960.62

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World Bank shares its view on naira performance

The World Bank has praised the CBN for its reforms and for achieving stability in the foreign exchange markets.

The World Bank has praised the CBN for its reforms and for achieving stability in the foreign exchange markets

However, the Bretton Institution warns that the country remains vulnerable to external shocks due to a narrow export base and dependence on short-term capital inflows.

It stressed that to ensure lasting stability of the local currency, the World Bank urged the government to focus on longer-term foreign exchange inflows from oil, remittances, and especially non-oil exports.

It also called for a more transparent FX policy framework and progressive adjustments to regulations governing banks’ foreign currency

These recommendations are contained in the October 2025 edition of its Nigeria Development Update titled “From Policy to People: Bringing the Reform Gains Home”, released on Wednesday.

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External reserves rise

Earlier, Legit.ng reported that the Central Bank of Nigeria disclosed that the country’s external reserves rose to $41.22 billion.

This marks the first time in over four years that the reserves have crossed the $41 billion mark.

The reserves, which strengthen the CBN’s capacity to defend the naira.

Source: Legit.ng