Naira Strengthens as Dollar Falls Below N1,600 Across Markets Amid Reserve Dip

Nigeria’s currency, the naira, gained further ground against the US dollar in both official and parallel foreign exchange markets on Monday, even as the country’s external reserves recorded a slight decline due to continued market interventions by the Central Bank of Nigeria (CBN).

According to data from the CBN, the naira closed at N1,543 per dollar in the Nigerian Foreign Exchange Market (NEFEM), marking an N11 or 0.70% improvement from the previous week’s rate of N1,554/$1. Trading data showed the dollar was exchanged for as high as N1,555 and as low as N1,541, with an average closing rate of N1,544.56.

However, the naira recorded losses against other major currencies. It weakened against the British pound, falling to N2,101.46/£1 from N2,100.30/£1. It also depreciated against the euro, dropping to N1,791.92/€1 from N1,788.26/€1.

In the parallel market, also known as the black market, the naira appreciated further. Bureau De Change (BDC) operators reported that the dollar was bought at N1,585 and sold at N1,597. The euro was sold at N1,817 and bought at N1,795, while the pound sterling exchanged at N2,150 for selling and N2,130 for buying.

A BDC operator who spoke on the trend confirmed the stronger demand for the naira and attributed the appreciation to recent regulatory actions and improved dollar supply within the market.

Meanwhile, the Central Bank also published updated exchange rates for other global currencies. The CFA traded at N2.68. The Chinese Yuan, also known as the Renminbi, stood at N215.75. The Danish Krone was pegged at N233.23.

The Euro exchanged at N1,788.26. The Japanese Yen traded at N10.75. The Saudi Riyal was set at N412.89. The South African Rand stood at N86.30. The Swiss Franc was valued at N1,908.30, and the British pound remained at N2,100.30.

Despite a recent rally in global oil prices, Nigeria’s external reserves recorded a minor decline. As of June 13, 2025, the reserves dropped to $37.93 billion, down from $38.02 billion recorded on June 11. This dip is attributed to the Central Bank’s sustained intervention in the foreign exchange market to ensure currency stability.

Economic analyst Bismark Rewane projected a sustained appreciation of the naira, along with a potential reduction in inflation to 23.15% and a 50 basis point cut in the Monetary Policy Rate. He credited the CBN’s recent strategies, including tighter control of money supply and more active intervention in the forex market, for the improved performance of the local currency.

As oil prices continue to rise globally, analysts believe that Nigeria could benefit from increased forex inflows, which may further strengthen the naira and bring relief to importers, businesses, and consumers dealing with exchange rate fluctuations.