Naira continues decline at official market, gains in parallel market

The Nigerian naira continued its downward trajectory at the official foreign exchange market for the second consecutive day, weakening against the U.S. dollar on Tuesday, February 4, 2025.

According to data from the FMDQ Securities Exchange, the naira depreciated to N1,498.95 per dollar on Monday, February 3, marking a decline from N1,495.60 per dollar recorded the previous day. This represents a loss of N3.35 for the local currency at the official window.

However, in the parallel market, the naira showed a slight rebound, gaining N5 against the dollar. It traded at N1,605 per dollar on Tuesday, improving from the N1,610 per dollar rate recorded on Monday.

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Against other major foreign currencies, the naira exhibited a mixed performance. It depreciated by N10 against the British pound, trading at N2,010 per pound, compared to N2,000 per pound the previous day. Meanwhile, it held steady against the Canadian dollar at N1,280 per CAD.

The local currency recorded a marginal gain of N10 against the euro, trading at ₦1,660 per euro, up from the previous rate of ₦1,670 per euro.

The continued fluctuation in the naira’s value highlights the persistent volatility in Nigeria’s foreign exchange market, with analysts attributing the pressure to demand-supply imbalances and ongoing economic uncertainties.