Naira Trades Mixed as Official Rate Exceeds Black Market Quote
The naira appreciated faster in the black market, compared to the rate at which the local currency has been recalibrating in the official window. Exchange rates diverged as the local currency raced towards the unification target, with the official rate trading above the black market quote.
In 2025, the naira has continued to trade stable versus the US dollar and other foreign currencies, thanks to the Central Bank of Nigeria’s (CBN) aggressive intervention in the foreign exchange markets.
Rather than its usual focus on the official market, the CBN has taken a holistic approach by selling US dollar to banks and creating a channel for Bureau de Change to access FX at the official rate.
“This has worked well for the naira since the beginning of the year, and it is encouraging despite the hidden costs’, analysts at LSintelligence Associates said in a chat with MarketForces Africa.
While the naira is gaining ground against the US dollar, the external reserves continue to deplete, falling from a 3-year high as a result of rising FX outflows. Nigeria’s gross external reserves inched lower to $38.699 billion on Friday on the back of sustained FX sales to authorised dealer banks.
In the official window on Monday, the naira depreciated by 0.17%, closing at ₦1,503.63 per US dollar. Similarly, the Naira ended the day at ₦1,490 per dollar in the parallel market, gaining N20 on each US dollar.
However, analysts noted that the Nigerian Foreign Exchange Market (NFEM) liquidity remained relatively stable, bolstered by CBN interventions. Trading activities in the official window were consummated between $/₦1,500.00 to $/₦1,515.00.
In the global commodity market, oil prices remained stable as investors monitored developments in peace talks on the Ukraine conflict and assessed the potential restart of crude exports from northern Iraq.
Brent crude slipped 6 cents (0.1%) to $74.37 per barrel, while US West Texas Instrument fell 14 cents (0.2%) to $70.26. Meanwhile, gold prices surged to a record high as safe-haven demand strengthened amid concerns over U.S. President Donald Trump’s tariff policies, with further support from increased inflows into the top gold-backed ETF.
Spot gold rose 0.2% to $2,941.60 an ounce after reaching $2,956.15 earlier, marking its eleventh record high in 2025. #Naira Trades Mixed as Official Rate Exceeds Black Market Quote SEC to Roll out Guidelines for Fintech in 2025 – Agama
