Dollar Appreciates Against Naira, New Exchange Rates Emerge
- The Naira depreciated at NAFEM as the Central Bank of Nigeria refrained from intervening in the official market
- The currency appreciated against the Pound Sterling and the Euro in the same trading window.
- At Guaranty Trust Bank’s FX desk and the parallel market, the naira also depreciated slightly
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Naira weakened against the US Dollar on Friday at the Nigerian Foreign Exchange Market (NAFEM), slipping by N1.76 or 0.13% to close at N1,355.42/$1 on Friday, February 13 with N1,353.66/$1 recorded a day earlier.
Data from the official market showed that the local currency came under renewed pressure amid sustained demand for foreign exchange and the absence of fresh intervention from the Central Bank of Nigeria (CBN).
Source: Getty Images
Naira performance against FX currencies
However, the Nigerian currency posted gains against other major currencies in the same window.
It appreciated against the Pound Sterling by N5.05 to settle at N1,844.59/£1, up from Thursday’s closing rate of N1,849.64/£1.
The naira also strengthened against the euro, rising by 75 kobo to close at N1,607.93/€1 compared with N1,608.68/€1 in the previous session.
At the FX desk of Guaranty Trust Bank (GTBank), the naira depreciated by N6 against the Dollar to trade at N1,365/$1, relative to N1,359/$1 on Thursday.
In the parallel market the naira traded at N1,430/$1.
Abudullahi a BDC trader told Legit.ng:
"Generally, the naira had a good week but fell slightly against the dollar on Friday. We expect the naira to continue improving next week and fall below a N1,400 selling rate."
Market participants noted continued demand from importers and individuals seeking foreign payments.
Source: Getty Images
Why naira fell
Analysts attributed the weakening of the currency in the official window to strong demand outpacing supply, despite inflows from exporters, non-bank corporates and other market participants, which had supported liquidity levels earlier in the week.
Additional pressure also followed the entry of duly licensed Bureau De Change (BDC) operators into the official foreign exchange market.
While the development initially heightened demand, industry sources said it could support exchange rate stability in the medium term as BDCs engage their banks to clarify operational guidelines and modalities for accessing foreign currency under the new framework.
Aminu Gwadabe, the president of the Association of Bureau De Change Operators of Nigeria (ABCON), told Legit.ng:
"the new directives to allow BDCs buy dollar from authorisd bank will increase dollar liquidity at the critical retail end of the market and provide source of dollars to the operators."
Here is a breakdown of the latest exchange rate
- CFA: N2.44
- Yuan/Renminbi: N196.17
- Danish Krona: N215.18
- Euro: N1,607.93
- Yen: N8.84
- Riyal: N361.42
- South African Rand: N84.55
- Swiss Franc: N1,762.34
- Pounds Sterling: N1,844.59
- US Dollar: N1,355.42
- UAE Dirham: N368.99
Otedola predicts naira to hit N1,000
Earlier, Legit.ng reported that billionaire businessman Femi Otedola projected that the naira could trade below N1,000 to the dollar before the end of 2026.
He noted that the Dangote Petroleum Refinery’s attainment of full operational capacity was a key driver of foreign exchange stability.
Otedola said Dangote refinery would crash the dollar
Source: Legit.ng
