US Dollar Crashes against Naira As Trump Warns Nigerian Govt
- The naira has appreciated to N1,421.73/$1 at the official market and also at the parallel market
- Nigerian currency performance in the last few weeks has been impressive as dollar inflow improves
- Donald Trump’s comments alleging attacks on Christians in Nigeria have raised concerns about what the future holds
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The United States dollar has weakened against the naira across official and parallel foreign exchange markets amid renewed international attention on Nigeria’s security situation.
The most recent data from the Central Bank of Nigeria (CBN) showed that the naira closed trading on Friday, October 31, at N1,421/$ in the Nigerian Foreign Exchange Market (NFEM).
Friday's exchange rate not only extended the naira’s strong rally but also marked the highest level the currency has reached in 2025.
Source: Getty Images
Naira compared to pound, euro
The Nigerian currency also appreciated against the pound and euro, rising to N1,863.66/£1 and N1,640.39/€1, respectively.
In the parallel market, traders told Legit.ng that the naira gained N20 to trade at N1,440 per dollar.
Dealers attributed the naira’s advance to stronger forex supply and reduced speculative demand, as the CBN maintained its interventions to stabilise the market.
Abudulahi, a BDC trader, confirmed the appreciation of the naira.
He said:
"For us, this is not the best time to buy dollars because we can't predict the next movement. The market is very dry and we hardly get customers to buy from us."
Source: Twitter
Trump's comments raises concerns
The gains for the naira came as US President Donald Trump declared Nigeria as a ‘country of particular concern’ in response to allegations of a Christian genocide in the country.
Trump announced his decision in a Truth Social post on Friday, which was shared on the White House’s X handle.
According to a publication by the Family Research Council in 2022, to declare a country a “country of particular concern” is an official designation typically made by the US government, primarily the Secretary of State, under specific US laws, Punch reports.
The exact meaning and implications of the designation depend on the specific legislation applied, but it generally indicates that the country engages in activities detrimental to US interests or universal human rights standards, and Trump has warned it must stop.
In the post, the US President wrote:
“Christianity is facing an existential threat in Nigeria. Thousands of Christians are being killed. Radical Islamists are responsible for this mass killing. Trump's making Nigeria a ‘country of particular concern."
“But that is the least of it. When Christians, or any such group, are killed like is happening in Nigeria (3,100 versus 4,476 Worldwide), something must be done!"
He also threatened military action if the situation did not improve.
Analysts are worried that the designation by Trump will have some implications for Nigeria.
International economist Dr. Raph Nwaezue noted that the designation could affect Nigeria’s standing with the World Bank and the International Monetary Fund (IMF).
He said:
“The United States wields influence over the Bretton Woods institutions. If things don’t go our way, some expected loans and funding programmes could be suspended.”
FBNQuest projects new naira exchange rate
Earlier, Legit.ng reported that FBNQuest Merchant Bank has projected that the naira will end the year at N1,662 per dollar, the exchange rate.
The Lagos-based research and investment bank’s analysts gave the prediction in its mid-year outlook titled “Steering the Course: From Volatility to Stability."
It noted that the naira has remained relatively stable throughout the year due to sustained Central Bank of Nigeria (CBN) interventions and tight monetary policy.
Source: Legit.ng
