Naira Stabilizes at N1,500 in Black Market, Flat at Official FX Market Amid Falling Reserves

Naira Stabilizes at N1,500 in Black Market, Closes Flat at Official FX Market Amid Declining External Reserves

The naira stabilized at N1,500 in the black market and closed flat at N1,496 in the official foreign exchange (FX) market, despite a decline in Nigeria’s external reserves.

Year-to-date, the naira has gained N95, or 6.3 percent, as the dollar was quoted at N1,500 on Thursday, down from N1,595 at the start of the month in the black market.

In the black market, the naira traded at N1,570 per euro, N1,900 per pound, and N1,059 per Canadian dollar on Thursday. Meanwhile, the official market saw a slight dip as the dollar was quoted at N1,496, marginally lower than the N1,495 recorded on Wednesday, according to data from the Central Bank of Nigeria (CBN).

Authorised currency dealers quoted the highest rate of N1,500.50 on Thursday, compared to N1,503 on Wednesday, while the lowest rate recorded was N1,496, slightly down from N1,495.

Nigeria’s external reserves have dropped to $38.49 billion as of February 26, 2025, shedding $2.39 billion year-to-date from $40.88 billion at the start of the year. Despite the declining reserves, analysts suggest the naira may not appreciate beyond N1,500 per dollar.

Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria (ABCON), had stated in December 2024 that the naira could appreciate to N1,400 but believes it may not rise beyond N1,500.

The Central Bank’s recent implementation of the Electronic Foreign Exchange Matching System (EFEMS) in November 2024 has further impacted the FX market, with new guidelines designed to promote transparency and efficiency.

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Reporting by David Okoroafor, News Writer in Lagos, Nigeria.