Naira appreciates at official market, weakens in black market

The Nigerian naira exhibited a mixed performance against major foreign currencies on Monday, March 3, 2025, as it appreciated slightly at the official market while weakening in the parallel (black) market.

At the official foreign exchange window, the naira strengthened to N1,499 per US dollar from the previous day’s rate of N1,500/$1, reflecting a marginal gain of N1.

Conversely, in the black market, the naira depreciated, exchanging at N1,506/$1, a loss of N1 compared to the previous rate of N1,505/$1.

British Pound (GBP): The naira weakened against the British pound, trading at N1,900/£1, down N20 from the previous day’s rate of N1,880/£1.

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Canadian Dollar (CAD): The exchange rate remained stable at N1,200/CA$1.

Euro (EUR): The naira lost N10 against the euro, trading at ₦1,560/€1, compared to ₦1,550/€1 the previous day.

The naira’s performance reflects ongoing market volatility, influenced by foreign exchange liquidity, demand pressures, and economic policies.

Analysts suggest that continuous monitoring of monetary policies by the Central Bank of Nigeria (CBN) and external economic factors will play a crucial role in determining the naira’s trajectory in the coming days.

Market watchers anticipate potential interventions from the CBN to stabilize the naira amid fluctuating exchange rates across different market segments.

The mixed currency movement underscores the challenges facing Nigeria’s forex market as the country navigates economic reforms and global financial dynamics.