Dollar Exchange Rate rises again in Official and black markets
The naira has suffered yet another setback against the US dollar in both the official and parallel foreign exchange markets, as fresh data shows a further depreciation to start the new week.
According to figures from the Central Bank of Nigeria (CBN), the naira closed at N1,537.09/$ in the Nigerian Foreign Exchange Market (NAFEM) on Tuesday, August 12 — representing a 0.076% drop or N1.77 loss from the previous close of N1,535.9/$.
Mixed Fortunes for the Naira
While the dollar gained, the naira managed slight recoveries against the pound sterling and the euro in the official market.
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Pound sterling: Improved by 20 kobo to N2,060.14/£1 from N2,060.34/£1.
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Euro: Strengthened by N3.85 to N1,782.75/€1 compared to the previous N1,786.60/€1.
Market analysts say these modest gains reflect improving liquidity and a gradual restoration of investor confidence.
Other official market rates:
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CFA franc: N2.72
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Chinese yuan: N213.76
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Danish krone: N238.82
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Japanese yen: N10.38
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Saudi riyal: N409.25
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South African rand: N86.50
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SDR: N2,106.83
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Swiss franc: N1,889.68
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WAUA: N2,093.23
Black Market Rates Paint a Different Picture
In the parallel market, the naira weakened further against the US dollar. Bureau De Change (BDC) operators reported that on Tuesday:
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Dollar: N1,547 buying / N1,553 selling
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Euro: N1,770 – N1,785
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Pound sterling: N2,070 – N2,085
This marks a slight drop from Friday’s closing rates of N1,540 buying and N1,550 selling for the dollar.
Outlook for 2025
Financial analyst Bismarck Rewane projects that the naira could close at N1,492/$ by 2025, buoyed by factors such as the domestication of corporate debt, increased diaspora remittances, and potential Eurobond issuance all expected to boost dollar supply and ease exchange rate pressures.
