The United States dollar has crashed to its lowest in the official foreign exchange market against the naira
Nigerians are expressing a sigh of relief as the naira shows a notable recovery against major currencies.
The British pound and the euro have also dropped in value as the naira continues its strong performance
The naira performance, according to Coronation Merchant Bank Limited, has attracted foreign exchange inflows
The Central Bank of Nigeria has revealed that the naira is now at its lowest level against the US dollar in 2025.
After trading activities at the Nigerian Foreign Exchange Market (NFEM) on Tuesday, October 26, the naira appreciated against the US dollar to close at N1,447/$.
The new exchange rate is a gain of N4.75 or 0.33% against the United States Dollar, in contrast to the preceding day’s N1,453.07/$1.
The last time the naira traded below N1,450 was in 2024 before the introduction of the NFEM.
It was the same performance for the naira against the British pound sterling and the euro on Tuesday in the official market.
The naira strengthened against the pound sterling in the official market, gaining N27.07 to close at N1,919.45 per £1, up from Monday’s N1,946.52 per £1.
The Nigerian currency also rose by N4.91 against the euro, ending the session at N1,690.33 per €1, compared with the prior session’s N1,695.24 per €1.
At GTBank, the naira gained N3 against the US dollar, exchanging at N1,462 per $1, up from N1,465 per $1 recorded the previous day.
In the black market, BDC traders confirmed to Legit.ng that the naira also appreciated:
One of the traders, Musa Bashir of said:
“My brother, the market has changed. We no longer get dollars from CBN and less patrinage because of banks having dollars now.
The dollar buying rate has dropped to 1,463 and selling rate now at N1,475. Previously buying rate was N1,476, while the selling rate is N1,486.
It is the same for the euro sells at N1,715, and we buy at N1,700. The British pound sterling is now trading below N2,000, selling at N1,995, with a buying rate of N1,970.”
Naira appreciation comes at the back of liquidity into the official market from foreign sources, the Central Bank of Nigeria (CBN), and other channels.
Its market update, Coronation Merchant Bank Limited revealed that the inflow to NFEM improved to $1.37 billion last week.
This suggests FX inflows in the official window increased by 25% week on week from $1.10 billion in the prior week.
Foreign portfolio investors (FPIs) remained the dominant source, according to Coronation Research, contributing 33.5 per cent ($460.01 million) of total inflows, followed by exporters (14.9 per cent), Non-Bank Corporates (10.8 per cent), CBN (6.6 per cent), and other sources (28.6 per cent).
In a related development reported that the Bank of Tanzania officially banned the use of foreign currencies, including the dollar, for local transactions and payments within the country.
With the ban, all goods and services in Tanzania must now be priced and paid for strictly in Tanzanian Shillings.
In a public notice, the central bank announced that all goods and services in Tanzania must now be priced and paid for strictly in Tanzanian Shillings.
