The Nigerian naira appreciated by 0.56% against the U.S. dollar today, strengthening to ₦1601.45/$1 from ₦1610.49/$1 recorded on May 12, 2025. The local currency also posted a 1.13% gain against the British pound, with the exchange rate improving from ₦2140.71/£1 to ₦2116.49/£1.
Although modest, these gains highlight ongoing volatility in Nigeria’s foreign exchange market, driven by shifting currency demand, constrained supply, and continued interventions by the Central Bank of Nigeria (CBN).
Daily Naira Market Rates (May 13, 2025)
- US Dollar: ₦1601.45/$1
- Euro: ₦1778.40/€1
- Pound Sterling: ₦2116.49/£1
- Chinese Yuan: ₦222.41/¥1
Despite the recent improvements, the naira remains highly sensitive to both domestic and global economic headwinds. Persistent inflation, fluctuating investor confidence, and limited access to official forex continue to drive many individuals and businesses toward the parallel market—dominated by Bureau de Change (BDC) operators—where pricing is often more flexible but less regulated.
Structural Market Gaps Persist
Efforts by the CBN and federal authorities to harmonize exchange rates have produced uneven results. The legacy of multiple exchange rate windows and historical managed-rate frameworks continues to hinder market transparency and foster arbitrage.
Ongoing Challenges Include:
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Limited Access to Official Forex
- High demand and low dollar supply burden an import-reliant economy.
- Regulatory red tape and documentation requirements discourage access to formal forex channels.
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Distorted Exchange Mechanisms
- Legacy sector-specific rates still distort pricing and contribute to inefficiencies.
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Economic Pressures & Sentiment
- Inadequate forex inflows, combined with sustained demand from the private sector, continue to strain liquidity.
With inflation remaining elevated and global uncertainty limiting capital inflows, analysts argue that the naira’s stability will require more than short-term policy tweaks. Long-term solutions—including boosting non-oil exports, attracting sustained foreign investment, and simplifying access to forex—are essential for restoring confidence and achieving currency resilience.
Until such structural reforms are implemented, market participants are urged to stay informed through trusted sources such as Aboki Forex, the CBN portal, and Google Finance.
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