Naira Depreciates 0.24% to N1,455/$1, CBN Releases Pound, Euro Latest Exchange Rates
- The naira is facing real festive pressure and has again depreciated against the US dollar in the official market
- It also lost value against the pound sterling and the euro in the official market and the black market.
- Analysts attribute the decline to year-end dollar demand from importers and retailers, though the naira remains stable within the official trading band, awaiting further CBN policy signals
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian naira weakened against the United States dollar by N3.52, or 0.24%, in the Nigerian Foreign Exchange Market (NFEM), closing at N1,455.38/$1 on Wednesday, December 8, down from N1,451.86/$1 recorded the previous day.
The naira also lost value against other major currencies in the official market.
Source: Getty Images
The Central Bank of Nigeria data showed that the naira depreciated by N2.51 against the pound sterling to close at N1,937.26/£1 from Tuesday’s N1,934.75/£1.
Naira also fell by N1.63 versus the euro, settling at N1,692.76/€1 compared with N1,691.13/€1 in the preceding session.
GTbank forex market data shows naira exchange rate for international payment remains at N1,460/$1.
Naira performance in the black market
In the parallel market, also known as the black market, it was the same story for the naira against the US dollar.
Traders who spoke to Legit.ng confirmed that the dollar appreciated against the Nigerian currency.
Abdullahi, a trader said:
"We sold the dollar at N1,489.56/$1 on Wednesday, compared with N1,473.60/$1 previously. The pound traded at N1,991.69/£1, the euro at N1,743.01/€1, and the Canadian dollar at N1,078.73/C$1."
Market pressures and outlook
The depreciation is largely driven by heightened year-end dollar demand, as importers and retailers seek foreign currency to prepare for Christmas and new year sales
BusinessDay reports that despite the naira’s fall, there are expectations that the pressure will ease following new dollar sales to banks by the CBN.
Source: Getty Images
Analysts note that the foreign exchange market is gradually adjusting to seasonal pressures while awaiting further policy guidance from the Central Bank of Nigeria (CBN).
Based on CBN published rates, here is a breakdown of naira's performance against other foreign currencies in the NAFEM market.
- CFA: N2.57
- Yuan/Renminbi: N206.04
- Danish Krone: N226.62
- Euro: N1,692.76
- Japanese Yen: N9.29
- Saudi Riyal: N387.81
- South African Rand: N85.44
- Swiss Franc: N1,809.28
Forex reserves on the rise
Earlier, Legit.ng reported that Nigeria’s external reserves have climbed to $45.04 billion, their strongest point since July 23, 2019.
The latest update from the Central Bank of Nigeria shows a steady improvement in the country’s foreign asset position, with nearly $5 billion added in just a few months.
That growth stands out at a time when several developing economies are struggling to protect their FX buffers.
Analysts say the consistent buildup signals stronger inflows supported by improved crude oil earnings, Eurobond-related receipts and multilateral financing.
Source: Legit.ng
