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.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.