Nigerian Forex Market Update: Naira Weakens Against Major Currencies
Recent data from the Central Bank of Nigeria’s (CBN) forex market reveals that the naira weakened against several major currencies in the official window.
According to data from the Nigerian Foreign Exchange Market, the naira closed at ₦1,599.7991 against the US dollar, declining by 5 basis points from the previous trading session on Wednesday. This depreciation occurred despite the Central Bank supplying foreign currency to authorized dealer banks.
The pressure on the naira extended to other major currencies as well. The British pound traded at ₦2,121.97 in the official window, compared to ₦2,215.25 at the previous day’s close. Similarly, the euro weakened to ₦1,818.1717 in the forex market.
Global market trends show the euro performing strongly against the US dollar, trading around $1.14, near its highest level since January 2022. This strength comes amid growing skepticism toward US assets due to trade policy uncertainties. The euro has appreciated approximately 5% against the dollar in April alone, as investors increasingly view the European currency as a viable alternative in the global financial system.
The euro’s upward momentum has been further supported by expectations of increased defense spending, particularly in Germany. On the monetary policy front, the European Central Bank is projected to implement its seventh rate cut since June, reducing the key deposit rate from 2.5% to 2.25%. Market analysts anticipate at least two additional cuts before year-end, with the stronger euro helping to mitigate inflationary pressures.
In contrast to these trends, the naira strengthened against the CFA franc, closing at ₦2.7595 in the official window, an improvement from ₦2.7842 in the previous session. Against the South African rand, the naira slightly depreciated, with the rand closing at ₦84.81, compared to ₦84.65 previously.
