- The Nigerian currency experienced an improvement in its value in all the exchange rate markets on Wednesday, February 19, 2025
- Data from the parallel segment of the forex market shows that the naira closed at N1,550 per dollar
- In the official FX market, the local currency also saw an improvement and closed trading at N1,509 from N1,510 per dollar
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The naira’s value rose in the parallel segment of the foreign exchange market on Wednesday, February 19, 2025, as the US dollar hit a new low.
The naira appreciated N1,550 per dollar in the black market with traders saying that demand pressure for the US greenback has reduced.
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Naira recovers in all markets
Data from Nairarates, the website publishing black market rates, shows that the currency dealers quoted the naira at a high of N1,545 and a low of N1,530 before settling at N1,550.
Abbas Yishau, a black market dealer said traders experienced moderate demand for the dollar, which sent it crashing.
He said most buyers now are those importing or going for business trips and could not source FX from official channels.
“Right now, most buyers are those embarking on business trips and medicals. So, those asking for FX for school fees have reduced,” he said.
The naira also rose in value at the official foreign exchange market, closing at N1,509 per dollar on Tuesday, February 18, 2025, up from N1,510.33 the previous day.
Naira crash: Experts explain how to boost FX rates
However, the gap between the official and parallel markets narrowed to N40.47 per dollar from N54.67 on Tuesday.
Legit.ng previously reported that the rallying of the Nigerian currency to N1,500 per dollar can be strengthened further as Nigeria grapples with exchange rate volatility.
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Tayo Teriba, the CEO of a Lagos-based research firm, said the naira’s current rate is nothing to be happy about as it has dropped from N1,300 per dollar last year.
Naira crash: Analysts ask CBN to narrow gaps
He said the government should seek to bring the exchange rate to N1,000, saying that while the naira is improving, there must be efforts to crash the US dollar to N1,000.
Janet Ogochukwu, senior banker and economist agreed with Teriba, saying that the current forex policy of the Nigerian government is not yielding the desired report.
“There is a chasm between the parallel and official markets. The reason for embarking on forex reforms was to unify the exchange rates.
So, the interventions are not producing the needed results. So, CBN can crash the FX rate to N1,000 per dollar,” she said.
CBN increases ATM withdrawal limits
Legit.ng earlier reported that following the new N100 ATM withdrawal charges, the Central Bank of Nigeria (CBN) had raised the withdrawal limits on ATMS to N20,000.
The apex bank disclosed this in its FAQs on the newly introduced charges.
According to the CBN, Nigerian banks have been mandated to raise their withdrawal limits to N20,000 per transaction to attract the N100 charges.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
