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Naira takes hit, depreciates against major currencies in official, black markets

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2 weeks ago

March 7, 2025

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The Nigerian currency, the naira, experienced a sharp decline against major international currencies on Thursday, March 6, 2025, both in the official and parallel markets.

The depreciation raised concerns among financial analysts and business stakeholders as the naira struggled to maintain stability.

At the official foreign exchange window, the naira depreciated by N12 against the United States dollar, closing at N1,512.30/$1. This marked a drop from the previous day’s rate of N1,500.80/$1, representing a total loss of N11.5.

The local currency suffered even greater losses in the parallel (black) market, where it traded at N1,580/$1. This was a significant depreciation of N55 compared to the previous day’s rate of N1,525/$1, indicating increased pressure on the foreign exchange market.

The depreciation extended beyond the dollar, affecting the naira’s value against other major global currencies:

British Pound (GBP): The naira declined by N25, trading at N1,925/£1 compared to N1,900/£1 the previous day.

Euro (EUR): The naira also weakened against the euro, exchanging at N1,620/€1, reflecting a loss of N15 from the previous day’s rate of N1,605/€1.

Canadian Dollar (CAD): The naira, however, remained stable against the Canadian dollar, holding steady at N1,200/CA$1.

The latest depreciation of the naira has sparked concerns among traders, importers, and financial analysts, with many attributing the instability to forex liquidity challenges, dwindling foreign reserves, and speculative trading in the parallel market.

Experts warn that continued depreciation could further impact inflation and the cost of living in Nigeria.

As the Central Bank of Nigeria (CBN) continues to implement measures to stabilize the currency, stakeholders are closely monitoring the forex market for any signs of recovery or further depreciation in the coming days.