CBN, Traders Announce New Naira to Dollar Exchange Rate
- The Nigerian currency has closed the first trading week against the United States dollar weaker as festive-season consumer spending spikes
- Data obtained from the CBN showed that week-on-week, the currency reversed earlier gains, indicating the pressures the FX markets face
- speculative trading.
- There is hope as Nigeria’s foreign reserves rose slightly to $45.04 billion, providing potential support for CBN interventions in the FX market.
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience, with extensive knowledge of the Nigerian economy, market trends, and corporate developments.
Naira fell further against the US dollar this week, closing at N1,454/$1 on Friday as year-end spending pushed up demand for foreign exchange.
In recent weeks, the naira has appreciated but has recently faced renewed pressure as importers, traders and holiday shoppers increased dollar purchases ahead of the Christmas and new year season.
Source: Getty Images
Naira fell against US dollar
Data analysed from the Central Bank of Nigeria (CBN) website showed a gradual decline throughout the week.
The naira opened the week at N1,450.01/$1 on Monday, firmed slightly to N1,447/$1 on Tuesday, before slipping to N1,447.5/$1 on Wednesday.
The pressure intensified on Thursday with a fall to N1,449/$1, ending the week weaker at N1,454/$1.
In the parallel market, traders in Lagos told Legit.ng that the naira fell. Throughout the week, the naira exchanged between N1,469.5/$1 and N1,472/$1.
Abudulahi one of the forex trader said:
Abdullahi, a forex trader, said he bought the United States dollar at N1,475 and sold at N1,490, bought the British Pound Sterling at N1,965 and sold at N1,990, and bought the Euro at N1,690 and sold at N1,725.
Last week's depreciation of the naira marks a shift from the modest improvement recorded in the previous week when the currency opened at N1,452/$1 on Monday, strengthened to N1,441/$1 on Tuesday, held at N1,442/$1 on Wednesday, before closing at N1,446.9/$1 on Friday.
The reversal experienced last week has been blamed on demand pressure heading into the festive period.
Here is a snapshot of the latest exchange rates
- CFA: N2.56
- Yuan/Renminbi: N205.12
- Danish Krona: N226.12
- Euro: N1,689.17
- Yen: N9.34
- Riyal: N386.47
- South African Rand: N85.67
- SDR: N1,978.53
- Swiss Franc: N1,803.34
- Pounds Sterling: N1,935.45
- US Dollar: N1,450.43
Source: Getty Images
Foreign reserves rise to $45.04 billion
In a positive turn, Nigeria’s external reserves grew to $45.04 billion from $44.9 billion at the beginning of the week, according to CBN data.
The increase, which may reflect improved oil revenue, external borrowing inflows, or multilateral funding, could provide the apex bank with more room for future market interventions if needed.
The naira’s outlook remains tied to dollar inflows, market liquidity, and festive spending trends as December progresses.
Expert predicts new naira exchange rate
Earlier, Legit.ng reported that Bismark Rewane, CEO of Financial Derivatives Company Limited, has projected that the naira could close at N1,492/$1 in 2025.
He attributed this optimistic outlook to increased domestic corporate debt, higher diaspora remittances, and the potential issuance of a Eurobond.
According to Rewane, these developments are likely to boost dollar supply and ease pressure on the exchange rate.
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Source: Legit.ng
