The Nigerian naira has continued its depreciation against the US dollar across all foreign exchange markets, reaching its lowest value in 2025 in the unofficial market, according to a Bureau de Change operator. This depreciation is attributed to the drop in crude oil prices, which is crucial for the Central Bank of Nigeria (CBN) to receive dollar inflows necessary to defend the naira.

On Thursday, May 8, the naira fell to N1,628 per dollar in the parallel market, also known as the black market. This represents a depreciation of N23 compared to the rate of N1,605 quoted on Friday, May 2. Forex trader Abdullahi noted that the buying rate was N1,613 per dollar, while the euro was bought at N1,795 and sold at N1,815. The British pound was being sold at N2,160 and bought at N2,140.

In contrast, the official foreign exchange (FX) market showed a slight improvement for the naira, with the currency improving by 0.1% or 89 Kobo to trade at N1,609.57/$1, compared to N1,610.46/$1 at midweek, according to CBN data. However, the naira tumbled against the pound sterling by N7.75 to settle at N2,145.48/£1, while it gained against the euro by N3.35 to close at N1,818.41/€1.

The CBN has published the following exchange rates: CFA: N2.79, Yuan/Renminbi: N222.46, Danish Krona: N243.68, Euro: N1818.41, Yen: N11.12, Riyal: N429.13, South African Rand: N88.64, SDR: N2184.44, Swiss Franc: N1948.00, and Pounds Sterling: N2145.48.

In related news, the Central Bank of Nigeria (CBN) recorded a N13.9 trillion loss as it attempted to settle overdue contracts and reduce FX liabilities on its balance sheet in 2024. This loss more than doubled from N6.3 trillion in 2023, as the apex bank redeemed legacy transactions.