Naira Appreciates Against US Dollar, Traders Quote New Exchange Rates for Black Market
- The value of the naira rose against the US dollar in the official market but fell in parallel foreign exchange markets
- The naira also appreciated at GTBank’s foreign exchange window, but fell in the official market against the British pound
- Market analysts expect the naira to stay range-bound, as forex intervention slows and the interbank market turnover drops
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian currency, the naira, recorded a mixed movement against the United States dollar in the official and unofficial foreign exchange markets on Thursday, July 3.
In the black market, Legit.ng spoke to several Bureau de Change (BDC) operators, who confirmed that the naira depreciated against the dollar despite higher exchange rates for the euro and the British pound sterling.
Source: Getty Images
Abdullahi, one of the BDC traders, told Legit.ng:
"The dollar buying rate has increased to N1,396 from N1,394 on July 1, while the selling rate rose to N1,406 from N1,404.
"The euro is now selling at N1,587, up from N1,583, while the buying rate increased to N1,567 from N1,563. The British pound sterling is selling at N1,870, compared to N1,865 on July 1, with the buying rate rising to N1,850 from N1,845."
Naira gains in the official market
It was a different scenario in the official market as the naira gained against the US dollar in the Nigerian Foreign Exchange Market (NAFEM) on Thursday, July 2, gaining N2.26, or 0.16%, to close at N1,370.15/$1, compared with N1,372.41/$1 recorded on Wednesday.
However, the Nigerian currency weakened against the British pound sterling, losing N10.44 to settle at N1,832.17/£1, down from N1,821.73/£1 a day earlier. It also depreciated against the euro by N2.91, closing at N1,568.28/€1, compared with N1,565.37/€1 in the previous session.
Market analysts said expectations remain positive for the naira as pressure from half-year profit-taking eases while the Central Bank of Nigeria continues to support market stability through its policy measures.
Data released by the CBN showed that interbank foreign exchange turnover declined to $85.52 million across 94 deals, down from $90.30 million recorded in the previous trading session.
The latest figures also showed that interbank FX turnover has fallen sharply over the past two trading sessions from an intra-week high of $269.90 million.
Despite the slowdown in CBN foreign exchange interventions, analysts expect the naira to remain within a relatively stable range for the rest of 2026, supported by tighter monetary policy and improved market confidence.
Source: Getty Images
Here is a snapshot of the naira performance
- CFA: N2.38
- Chinese Yuan (Renminbi): N201.80
- Danish Krone: N209.77
- Euro: N1,568.28
- Japanese Yen: N8.51
- Saudi Riyal: N364.91
- South African Rand: N84.32
- SDR: N1,860.16
- Swiss Franc: N1,705.44
- British Pound Sterling: N1,832.17
- US Dollar: N1,370.15
- WAUA: N1,859.98
- UAE Dirham: N373.05
CBN relaxes dollar account rules
Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) has unveiled sweeping changes to its foreign exchange framework, granting Nigerians greater freedom to access and use funds held in domiciliary accounts as the country’s FX market shows signs of improving liquidity.
Contained in the newly released Foreign Exchange Manual 2026, the reforms reverse several restrictions introduced during the COVID-19 era and signal a broader shift toward a more liberalised foreign exchange market.
The move is expected to boost confidence among individual savers, diaspora investors and businesses.
Source: Legit.ng
