Naira Depreciates Against US Dollar- See New Exchange Rate
The Nigerian Naira has been on a downward spiral, weakening against the US Dollar, British Pound, and Euro. This continued depreciation is causing concern among business owners, forex traders, and economists alike. The Naira’s struggle against these major currencies reflects ongoing volatility in the foreign exchange market. This article takes a closer look at the latest exchange rate trends, factors contributing to the decline, and the potential outlook for the Naira in the coming months.
Latest Naira Exchange Rates and Trends in February 2025
Parallel Market: Naira vs US Dollar
As of Wednesday, February 12, 2025, the Naira traded at N1,570 per US Dollar, marking a decline from N1,565 per Dollar on the previous day. The slide began earlier in the week, with the Naira trading at N1,560 per Dollar on Monday, February 10.
Official Market Trends: Naira Against the Dollar
In the official market, the Naira lost value again, closing at N1,502 per Dollar on Monday and dropping to N1,513.10 per Dollar by Tuesday, February 11. Naira official exchange rate has been under persistent pressure.
Naira Depreciation Against Pound and Euro in February 2025
| Date | GBP Rate | Euro Rate |
|---|---|---|
| 10-Feb-25 | N1,955.00 | N1,620.00 |
| 11-Feb-25 | N1,950.00 | N1,595.00 |
| 12-Feb-25 | N1,975.00 | N1,600.00 |
The Naira has faced consistent losses against foreign currencies, such as the GBP and Euro in the parallel market, highlighting persistent volatility in the forex market.
Key Factors Contributing to Naira’s Depreciation
High Demand for US Dollars
The Naira’s depreciation is largely driven by the growing demand for US Dollars, particularly for business transactions and import needs. With limited dollar supply, the exchange rate pressure intensifies, resulting in further depreciation.
Liquidity Issues in the Forex Market
Despite the Central Bank of Nigeria’s (CBN) interventions, liquidity remains a challenge, with forex shortages creating instability in the Naira exchange rate.
Speculation and Market Sentiment
Market speculation and uncertainty also contribute significantly to the Naira’s downward trend. Traders anticipate further declines, leading to an increase in demand for foreign currency.
Market Outlook for the Naira: What to Expect
CBN Intervention and Policy Measures
The Central Bank of Nigeria has introduced stricter regulations, including tighter control over Bureau De Change operators and efforts to increase dollar availability in the official market. However, experts warn that these measures may not be enough without substantial forex supply improvements.
The Role of Foreign Investment
Foreign investment, particularly in non-oil sectors, is crucial for stabilizing the Naira. Experts advocate for policies that boost foreign capital inflows to ease forex pressure.
CBN’s Strategy for Stabilizing the Naira
Governor Olayemi Cardoso of the CBN has emphasized that violators of the Nigeria Foreign Exchange (FX) Code will face penalties. This signifies the CBN’s commitment to improving transparency in the forex market and ensuring stability.
Frequently Asked Questions (FAQ)
Why is the Naira losing value against the US Dollar?
The Naira’s depreciation against the US Dollar is mainly due to high demand for foreign currency, limited supply, and factors like speculation and liquidity issues in the market.
What measures has the CBN taken to stabilize the Naira?
The Central Bank of Nigeria has introduced policies such as tighter control over Bureau De Change operations and increasing the availability of dollars in the official market to support the Naira.
What is the current Naira exchange rate against the Euro and Pound?
In February 2025, the Naira has continued to weaken against the British Pound (GBP) and Euro (EUR), with rates reaching as high as N1,975 per GBP and N1,600 per EUR.
How has the Naira performed since 2023?
Since 2023, the Naira has depreciated by 70% against the US Dollar, a sharp decline following the loosening of forex controls in Nigeria.
