MARKET NEWS

BY Hope Moses-Ashike

The naira on Monday fell by 2.8% against the dollar in the official foreign exchange (FX) market, despite the intervention of the Central Bank of Nigeria (CBN).

After trading yesterday, the naira depreciated by N45.21 as the dollar was quoted at N1,612.23 compared to N1,567.02 quoted on Friday at the Nigeria Foreign Exchange Market (NFEM), data from the CBN indicated.

The authorised currency dealers quoted the dollar at the highest rate of N1,655 per dollar and the lowest rate of N1,590/$ on Monday.

However, at the parallel market, also known as black market, the local currency closed steadily at N1,565 on Monday.

On Friday, the apex bank injected a total of $197.71 million into the market through authorised dealers, to enhance liquidity in the market.

The move was in line with its commitment to ensuring adequate liquidity and supporting orderly market functioning.

This was disclosed in a statement signed by Omolara Omotunde Duke, director, financial markets department. “This measured step aligns with the Bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market.”

The CBN said it noted recent movements in the foreign exchange market between April 3 and 4, 2025, reflecting broader global macroeconomic shifts currently affecting several emerging markets and developing economies.

These developments were as a result of the recent announcement of new import tariffs by the United States government on imports from several economies, which has triggered a period of adjustment across global markets. Crude oil prices have also weakened, declining by over 12% to approximately US$65.50 per barrel, presenting new dynamics for oil-exporting countries such as Nigeria.

“The CBN continues to monitor global and domestic market conditions and remains confident in the resilience of Nigeria’s foreign exchange framework, which is designed to adjust appropriately to evolving fundamentals.

“All Authorised Dealers are reminded to adhere strictly to the principles outlined in the Nigeria FX Market Code and to uphold the highest standards in their dealings with clients and market counterparties,” the statement read.