Naira Reverses Loss Against US Dollar As Market Shakes Off Trump's Threat

• The naira rebounded on Tuesday after initial weakness triggered by U.S. President Donald Trump’s comments on Nigeria
• The forex market witnessed stability as traders dismissed fears of any immediate economic fallout from US threat
• The currency traded around N1,440/$1 in the Lagos and Abuja parallel markets as market watchers remained calm

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 regained strength on Tuesday, November 5, reversing losses recorded the previous day, at the Nigerian Foreign Exchange Market (NFEM) despite earlier concerns over remarks made by US President Donald Trump.

Official data from the Central Bank of Nigeria (CBN) indicated that the Nigerian currency appreciated to N1,433.65 per dollar, representing a 0.2% or N2.69 gain from Monday’s rate of N1,436.34.

Also, the naira improved its value against the Pound Sterling in the official market by N22.11 to settle at N1,873.36/£1 versus the previous day’s N1,885.77/£1.

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Naira reacts to Trump’s threats, crashes against US dollar

It also improved against the Euro by N4.95 to finish at N1,648.42/€1 compared with the previous session’s N1,653.37/€1.

Naira in the unofficial market

In the parallel market, also known as the black market, the naira also increased in value.

Traders told Legit.ng that the dollar exchange rate hovered around N1,440 to the dollar.

Abudulahi, a Lagos-based forex trader, said.

“I sold the dollar at N1,445 and bought at N1,435 a slight improvemnt from yesterday, while the pound traded between N1,900 and N1,920. For euro our selling rate is N1,630 to N1,655.

“The market is stable today because traders now believe Trump’s comments are unlikely to lead to any real policy or action affecting Nigeria."

Dealers linked the stability to moderate demand for the greenback and improved dollar supply from informal channels, which helped offset any negative sentiment from Trump’s comments.

Also, Nigeria’s external reserves supported market confidence, rising to $43.25 billion as of November 3, 2025, according to the CBN.

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Naira, Eurobonds take major hit after Trump’s military threat to Nigeria

Trump’s comments, shared on his Truth Social account on Saturday, claimed he had directed the Pentagon “to prepare for possible action” while threatening to suspend aid to Nigeria.

The remarks briefly rattled investor sentiment and raised fears of potential geopolitical and economic implications before the market stabilised.

Economic implications of US military action

Earlier, Legit.ng reported that the Centre for the Promotion of Private Enterprise (CPPE) has raised alarm over the potential economic repercussions of the recent military threat issued by U.S. President Donald Trump against Nigeria.

In a new policy brief titled “Potential Economic Implications of the U.S. Threat of Military Action on Nigeria,” CPPE warned that the development could trigger widespread investor panic, financial market volatility, and damage Nigeria’s reputation as a safe investment destination.

The CPPE noted that even if such rhetoric is based on false premises, it has already sparked diplomatic unease and market uncertainty.

Source: Legit.ng