Naira Slips Against US Dollar in Official, Black Markets
- The naira has weakened slightly against the US dollar in the official market and black market
- The local currency also depreciated against the British pound and euro in the official FX market
- The CBN has reassured that external reserves remain strong at $48.70 billion
CHECK OUT: How to Start Earning with Copywriting in Just 7 Days – Even if You’re a Complete Beginner
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 naira depreciated slightly against the United States dollar in the official market on Friday, April 17, amid mixed performance across major foreign currencies.
Data from the Central Bank of Nigeria (CBN) showed that at the Nigerian Foreign Exchange Market (NAFEM) showed that the local currency weakened by N1.34, or 0.10% to close at N1,343.64/$1, compared to N1,342.30/$1 recorded in the previous session.
Source: Getty Images
The naira also declined against other major currencies in the same window. It fell by N5.03 against the British pound to settle at N1,824.39/£1, down from N1,819.36/£1, and dropped by N10.05 against the euro to close at N1,591.14/€1, compared to N1,581.09/€1 previously.
At the GTBank FX desk, the exchange rate remained unchanged at N1,355/$1, indicating relative stability in the banking segment.
Similarly, the naira fell in the parallel market.
Abudulahi a BDC trader told Legit.ng that the naira closed the week lower:
“The current cash market rates are as follows: the dollar buying rate is N1,394, while the selling rate is N1,403. The pound sterling trades at N1,860 for buying and N1,875 for selling, while the euro is N1,610 for buying and N1,625 for selling.”
Liquidity improves, reserves decline
Interbank liquidity improved significantly, rising to N124.34 million from N74.255 million recorded a day earlier, according to data from the CBN.
Meanwhile, Nigeria’s external reserves stood at $48.70 billion, below the previous peak of $50 billion recorded in 2009, reflecting ongoing uncertainties in the global commodities market.
CBN reassures on external reserves
The BN moved to calm concerns over fluctuations in the country’s external reserves, stating that such movements are normal and do not pose a threat to economic stability.
CBN Governor Olayemi Cardoso made this known at the end of the IMF/World Bank Spring Meetings in Washington, D.C., where he emphasised that Nigeria’s reserves remain strong.
According to him, the reserves position is robust, supported by buffers built through recent policy reforms, and remains above international benchmarks.
Cardoso noted that the current reserves can cover about 13 months of imports, significantly exceeding the minimum threshold recommended by global financial institutions.
He added that the structure of Nigeria’s foreign exchange market has improved, making it more liquid and market-driven, with reduced reliance on the apex bank.
He said:
“It is normal to see movements in reserves, and there is no cause for concern. We are in a very comfortable position relative to global benchmarks.
“Today, the market has greater liquidity, and investors can move in and out more freely.”
Source: Getty Images
Latest exchange rates
The CBN also released updated exchange rates for other currencies:
- CFA: N2.4101
- Yuan/Renminbi: N197.06
- Danish Krona: N212.86
- Euro: N1,591.14
- Yen: N8.49
- Riyal: N358.17
- SDR: N1,845.85
- Swiss Franc: N1,725.04
- Pounds Sterling: N1,824.39
- US Dollar: N1,343.64
- WAUA: N1,843.3
- UAE Dirham: N365.75
- South African Rand: N82.77
African currencies tipped to extend gains
Earlier, Legit.ng reported The naira is among African currencies expected to strengthen further against the US dollar in the days ahead.
While currencies in Kenya and Uganda are likely to remain stable, according to traders.
Meanwhile, Ghana’s cedi may weaken further due to strong dollar demand from the energy sector.
Source: Legit.ng
