Naira Fluctuates Against Dollar in Nigerian Markets
The Central Bank of Nigeria (CBN) has released the latest exchange rates, revealing fluctuations in the value of the Nigerian Naira against major currencies. In the official market, the Naira experienced a slight depreciation, reversing its recent gains, while it also weakened in the parallel market.
Data from the CBN indicates that the Naira closed at N1,599 per dollar in the Nigerian Foreign Exchange Market (NFEM) on Thursday, May 15, representing a 0.31% decrease from the previous day's rate of N1,596. The Naira also depreciated against the Pound Sterling, closing at N2,126.46/£1, and against the Euro, closing at N1,791.24/€1.
Specific exchange rates provided include:
- Pound Sterling: N2,115.26
- Euro: N1,808.90
- Chinese Yuan: N218.57
- CFA Franc: N2.78
- Danish Krona: N242.30
- Japanese Yen: N11.18
- Saudi Riyal: N426.10
- South African Rand: N84.65
- Swiss Franc: N1,954.23
In the parallel market, the Naira depreciated to N1,635 per dollar. Traders reported buying dollars at N1,620 and selling at N1,635. The Euro traded between N1,790 and N1,805, while the Pound Sterling ranged from N2,140 to N2,155. This widened the margin between the parallel market and NFEM rate to N36 per dollar.
However, there is optimism for the Naira, with expectations of a boost from the temporary US-China tariff reduction agreement and rising oil prices, potentially increasing Nigeria’s external reserves above $38 billion, enabling the CBN to defend the Naira from further depreciation.
Contrasting the official market's depreciation, the Naira appreciated at the parallel market, strengthening to N1625 per dollar on Thursday, a N10 increase from Wednesday's N1635. A Bureau de Change operator in Wuse Zone 4, Abuja, reported buying dollars at N1620 and selling at N1625 on Thursday. Meanwhile, in the official market, the currency depreciated slightly by N2.63 to N1,599.33 per dollar on Thursday from N1,596.70 traded the previous day.
These exchange rate fluctuations occur as Nigeria's inflation rate in April 2025 dropped to 23.7 percent.
