Exchange Rate Gap Closes to N13 as Naira Crashes Against US Dollar
- The naira depreciated for the 11th consecutive trading session on Wednesday, March 4, 2025, against the US dollar
- Data from the CBN showed the naira closed in the NAFEM window 0.2% lower than the previous rate
- Reacting, Muda Yusuf, CEO of CPPE, explained how geopolitical tensions in the Middle East could impact Nigeria’s forex inflows
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 closed lower against the United States Dollar in the Nigerian Foreign Exchange Market (NAFEM) on Wednesday, March 4, 2025.
At the official market, the naira lost N2.80, or 0.2%, against the greenback to close at N1,387.09/$1, down from Tuesday’s N1,384.29/$1.
Source: Getty Images
Naira crashes at black market
It also weakened against the pound sterling, losing N12.88 to N1,855.10/£1 from N1,842.22/£1, and fell by N9.08 against the euro to N1,615.27/€1 from N1,606.19/€1.
In the retail market, the naira depreciated by N12 at the GTBank forex counter, selling for N1,385/$1, compared with N1,373/$1 the previous day.
In the parallel market, traders told Legit.ng on Thursday morning that the naira has crashed from the high of N1,350 to N1,430.
Abudullahi, a BDC trader, told Legit.ng:
"We sold the dollar at N1,435/$1, the pound at N1,890/£1, and the euro at N1,630/€1 on Tuesday, compared with Monday’s rates of N1,400, N1,845, and N1,596 respectively."
Despite the downward trend, which has persisted for almost two weeks, market observers say the naira has avoided panic, remaining within the projected N1,350 to N1,450 per dollar band.
Source: Getty Images
Nigeria’s gross external reserves rose slightly to $49.693 billion from $49.604 billion, according to the latest data from the Central Bank of Nigeria (CBN).
The apex bank has also revealed that its gold reserves have increased to $3.5 billion, following the delivery of “responsibly sourced” gold refined to the London Bullion Market Association (LBMA) Good Delivery standard.
The development comes amid a sustained rally that has seen the gold price surge to over $5,000 per ounce.
Snapshot of naira rates in official market
- CFA : N2.45
- Yuan/Renminbi : N201.09
- Danish Krona : N216.15
- Euro : N1,615.27
- Yen : N8.82
- Riyal : N369.49
- South African Rand : N84.94
- Swiss Franc : N1,777.64
- Pounds Sterling : N1,855.10
- US Dollar : N1,387.10
- UAE Dirham : N377.55
Geopolitical tensions and Nigeria’s forex market
In an earlier report by Legit.ng, Muda Yusuf, the CEO of the Centre for the Promotion of Private Enterprise (CPPE), explained how the ongoing Iran-US conflict could impact Nigeria, especially the naira.
Yusuf noted that while the immediate benefits include higher crude export receipts, improved foreign exchange inflows, strengthening of external reserves, and increased FAAC allocations to all tiers of government.”
He added that geopolitical shocks in the Middle East often push crude prices up sharply, sometimes by $5–$15 per barrel within days.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
