The Nigerian naira has been showing mixed movements in the foreign exchange market, with the official exchange rate now higher than the black market rate. This shift comes as Nigeria moves closer to a unified exchange rate system.
Since the beginning of 2025, the naira has remained relatively stable against the US dollar and other major currencies. This stability is largely due to the Central Bank of Nigeria’s (CBN) aggressive interventions in the forex market.
Instead of focusing solely on the official market, the CBN has expanded its efforts by selling US dollars to commercial banks and granting Bureau de Change (BDC) operators access to forex at official rates. Analysts at LSintelligence Associates noted that this approach has helped strengthen the naira, although it comes with hidden costs.
Despite the naira’s gains, Nigeria’s foreign reserves are gradually depleting due to continuous forex interventions. As of Friday, the country’s external reserves had dropped to $38.7 billion, marking a three-year low.
On Monday, the naira weakened slightly in the official market, closing at ₦1,503.63 per US dollar, a 0.17% drop. However, in the parallel market, the naira appreciated, closing at ₦1,490 per US dollar, gaining ₦20 per dollar.
Market liquidity remained stable, supported by CBN interventions. Trading activities in the official market fluctuated within the range of ₦1,500.00 to ₦1,515.00 per dollar.
Global Market Update Oil prices remained steady as investors kept an eye on peace talks regarding the Ukraine conflict and the possible resumption of crude exports from northern Iraq.
- Brent crude dropped slightly by 6 cents (0.1%) to $74.37 per barrel.
- US West Texas Intermediate (WTI) declined 14 cents (0.2%) to $70.26 per barrel.
- Gold prices hit a new record due to increasing demand for safe-haven assets amid concerns over US trade policies.
- Spot gold climbed 0.2% to $2,941.60 per ounce, after reaching an all-time high of $2,956.15.
