The Nigerian currency, the naira, recorded a strong performance against the US dollar in the black market but fell in the official market this past week.
Checks by Naturenex show that the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, February 14, closed at N1,510.10/$1 to the US dollar.
Friday’s exchange rate saw a slight depreciation against the US dollar compared to the previous day’s closing rate of N1,510.00/$1.
The naira, however, appreciated against the pound sterling in the official market, closing at N1,879.42/£1, reflecting a loss of N7.32 compared to the previous session’s rate of N1,872.42/£1.
Similarly, the naira weakened against the euro, closing at N1,566.23/€1, which represents a loss of N6.27 from Thursday’s closing rate of N1,559.96/€1.
Naira improves against dollar at black market
In the parallel market, also known as the black market, it was a different story as the Nigerian naira appreciated.
Traders confirmed that the U.S. dollar was sold to Nigerians at an exchange rate of N1,565/$1.
The rate indicates N5 appreciation, as the dollar was sold at N1,570/$1 the previous day.
Some other BDC operators were also quoting the dollar at a selling rate of N1,550 and a buying rate of N1,445.
Snapshot of naira rates in official market
Based on CBN published rates, here is a breakdown of naira’s performance against other foreign currencies in the NAFEM market.
- CFA: N2.38
- Yuan/renminbi: N206.60
- Danish krona: N209.63
- Euro: N1,566.23
- Yen: N9.80
- Riyal: N402.03
- South African rand: N81.37
- Swiss franc: N1,660.66
- Pounds Sterling: 1879.42
ABCON predicts brighter future
Aminu Gwade, president of the Association of Bureau De Change Operators of Nigeria (ABCON), has highlighted that the effective implementation of the Central Bank of Nigeria’s (CBN) forex policy on the sale of interbank/EFEM proceeds to BDCs has contributed to the naira’s recovery.
In a statement, he said:
“The gradual implementation of the sale of interbank/EFEM proceeds to BDCs by banks has led to a significant appreciation of the naira in the market today. This development highlights the effective transmission mechanism of the CBN’s foreign exchange policy reforms through the BDCs.
“We, therefore, commend the CBN, the Federal Government, and Nigerians in general as the naira is trading between N1,540/$ and N1,545/$ today, 14 February 2025.”
