The value of Nigerian currency has depreciated against the US Dollar in the official foreign exchange market.
Data from the Central Bank of Nigeria showed that at the end of trading at Nigerian Foreign Exchange Market (NFEM) naira closed at N1,496/$1 on Thursday, February 27.
Thursday’s exchange rate showed that the naira depreciated by just N1 compared to the closing rate of N1,495 on Wednesday, February 26, 2025.
However, the naira remained stable against the British pound sterling, closing at N1,898/£1 in the official market, the same rate as the previous day’s trading.
Similarly, the euro maintained its exchange rate, selling at N1,572/€1 on Thursday.
In the black market, Bureau de Change operators confirmed that the dollar was sold at a slightly higher rate of N1,505, compared to the previous day’s rate of N1,500/$1.
Abdulahhi, a BDC trader, told TimesNow.com.ng:
There are reports that the naira could come under serious pressure in the weeks ahead due to a drop in the country’s foreign reserves.
Data showed that in the past month, reserves depleted by over $2 billion as the CBN injected more dollars into the market.
The CBN has also supported the naira by clearing a backlog of foreign exchange demands and boosting dollar supply to Bureau de Change (BDC) operators.
Bloomberg reported that in the last 33 days, foreign reserves have consistently declined.
This decline suggested that the currency may experience volatility in the coming weeks after a period of relative stability.
CBN’s naira against other foreign currencies’ exchange rates below:
In an earlier report by TimesNow.com.ng, the managing director and CEO of Financial Derivatives Company (FDC), Bismarck Rewane, cautioned policymakers against becoming careless due to the naira’s recent stability and increased predictability.
The economist cautioned Nigerian authorities not to be “carried away” by the rapid currency appreciation, saying it is “temporary” and should be handled carefully.
Rewane did point out that the local currency had gained 9% so far in 2025, but caution should be exercised in light of the naira’s recent stability.
Proofreading by James, Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
