Naira stabilises at N1,500 in black market despite declining reserves

The naira stabilised at N1,500 in the black market and closed flat at the official foreign exchange (FX) market despite declining external reserves.

The naira has gained N95 or 6.3 percent year-to-date as the dollar was quoted at N1,500 on Thursday compared to N1,595 quoted at the beginning of the month in the black market.

Against other currencies, the naira traded at 1,570 per euro, 1,900 per pound, and 1,059 per Canadian dollar on Thursday in the black market.

At the official market, the naira closed flat on Thursday as the dollar was quoted at N1,496 per dollar slightly lower than N1, 495 quoted on Wednesday at the Nigerian Foreign Exchange Market (NFEM), according to data from the Central Bank of Nigeria (CBN).

The authorised currency dealers quoted the dollar at the highest rate of N1,500.50 on Thursday as against N1,503 on Wednesday. The market recorded the lowest rate of N1,496, slightly lower than N1,495 quoted on Wednesday at the NFEM.

Nigeria’s external reserves have declined to $38.49 billion as of February 26, 2025, shedding $2.39 billion year-to-date compared to $40.88 billion recorded at the beginning of the year.

The naira, Nigeria ‘s currency, which has been appropriating since the Central Bank introduced the new electronic forex trading platform may not rise beyond N1,500 per dollar according to analysts.

Responding to a question in whether the naira could appreciate to N1,400, Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria (ABCON) said in December 2024 that “It is achievable considering the enhanced investors confidence but I want to believe further appreciation levels may not go beyond N1500/$.”

On November 2024, the apex bank issued comprehensive guidelines for the operations of the interbank foreign exchange trading system via the Electronic Foreign Exchange Matching System (EFEMS), pegging the minimum tradable amount at $100,000 with incremental clip sizes of US$50,000.00, to promote transparency and efficiency in the FX market.