The Nigerian currency, the naira, recorded losses against the British pound (GBP) and the South African rand (ZAR) in the official foreign exchange market, based on recent data from the Central Bank of Nigeria (CBN).
The pound sterling ended the trading week at a rate of N2,120, rising from N2,106 at the week’s open. This upward trend was linked to increased settlement obligations involving trade transactions with UK-based partners.
Conversely, reduced demand for the euro (EUR) in comparison to available forex supply helped the naira gain against the European currency. Improved trade relations and business activity with European partners contributed to this outcome.
According to the CBN’s data, the local currency appreciated against the euro, closing the week at N1,817.68, up from the initial rate of N1,829.43 at the start of trading. The spot exchange rate between the naira and euro experienced notable volatility throughout the week, influenced by changing trends in global market activities.
Despite the euro’s performance strengthening against the US dollar on the international stage, the naira maintained its rally against the euro, indicating shifts in local forex demand dynamics.
The data also reaffirmed that most foreign transactions in the Nigerian market are conducted in US dollars (USD), which remains the predominant currency for international payments.
In relation to the South African rand, the naira weakened, settling at N85.19 on the official market, compared to N83.71 at the start of the week. The depreciation followed increased demand for rand-denominated transactions, leading to price adjustments on the CBN’s foreign exchange platform.
However, there was some upside for the local unit against the Japanese yen. The naira closed at N11.25, reflecting a marginal appreciation from N11.27 recorded the previous week.
In a broader move, the naira ended Thursday’s session at N1,599.93 to the US dollar in the official FX market, showing a mild gain from the previous week’s close of N1,603.78.
Market watchers have observed a shift in sentiment within the global forex environment, with traders offloading dollars on speculation that the DXY index would remain under bearish pressure. Analysts at CardinalStone Partners Limited noted that the US dollar depreciated by 4.0% in Q1 2025, marking its weakest quarterly performance since 2008.
While some speculate that the decline in the dollar’s value may be a strategic effort by the United States to mitigate its widening trade deficit, analysts have highlighted a broader narrative centered on slowing economic growth. This has led to widespread sell-offs in traditional assets and a gradual reallocation of capital toward other markets, particularly within Europe.
 and the South African rand (ZAR) in the official foreign...){kind=link}