Naira Hits Record Low Against Dollar Amid Trump’s Tariff Announcement
The Nigerian naira recorded its biggest depreciation this week at the official foreign exchange market following the tariff announcement by former US President Donald Trump.
According to the Central Bank of Nigeria (CBN), the naira fell to N1,552.53 per dollar on Thursday, down from N1,531.25 on Wednesday.
This means the currency slumped by N21.28 against the dollar in a single day, marking its steepest depreciation since March 22, 2024, when it dropped by N18.96 in the official market.
Similarly, at the black market, the naira weakened by N5 on Thursday, trading at N1,560 per dollar, compared to N1,555 on Wednesday.
CBN Reports Highest Forex Reserves in Three Years
The depreciation comes despite the CBN’s announcement that Nigeria’s Net Foreign Exchange Reserve (NFER) hit $23.11 billion by the end of 2024, its highest level in over three years.
The sharp decline in the naira at both the official and parallel forex markets follows Trump’s new tariff policy, which has triggered economic concerns globally.
Economic Experts Raise Concerns Over Impact on Naira
Financial analysts believe Trump’s 10 percent baseline tariff could disrupt US-Nigeria trade worth $10 billion annually.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, warned that the policy could have serious implications for Nigeria’s economy, particularly as it signals the end of the African Growth and Opportunity Act (AGOA).
“This could have implications for the naira exchange rate,” Yusuf said in a statement on Thursday.
