The value of the dollar has depreciated significantly in both the official and unofficial foreign exchange marketsNew data shows that the naira is now selling below N1,600 in the unofficial market for the first time in 2025The new exchange rates indicate that the recent policies introduced by the Central Bank of Nigeria are working
Henzodaily.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The naira has once again appreciated against the United States dollar in the parallel market popularly called the black market.
Checks on Wednesday, February 5 show that the dollar crashed below N1,600 for the first in over seven months.
The value of the naira has appreciates against the US dollar
Photo credit; Bloomberg/contributor
Source: Getty Images
Traders who spoke to Henzodaily.ng confirmed that the dollar is sold at N1,582 exchange rate and bought at N1,565/$.
The latest exchange rate is a huge win for the naira considering that at the beginning of the year in the parallel market, the naira exchanged as high as N1,665.
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Official exchange rate
At the official foreign exchange (FX) market, the naira remained steadied at N1,499 per dollar at the Nigerian Foreign Exchange Market (NFEM) on Wednesday, February 5.
Currency dealers attributed the naira appreciation to improved dollar supply and moderation in demand for the greenback, following the Central Bank’s policies.
In recent weeks the CBN has introduced several policies notably the launch of the Nigerian Foreign Exchange Code (FX Code), which has created positive sentiments around the naira.
At the launch, Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN) said that the code will promote accountability, ensure compliance, and engender transparency in the country’s foreign exchange market.
He emphasised that the Nigerian FX Code sets clear and enforceable standards for ethical conduct and governance in the foreign exchange market, addressing past challenges that undermined market integrity.
His words:
“We must not forget where we are coming from. The era of multiple exchange rates, which created privileges for a select few at the expense of most Nigerians, inflicted significant damage on market integrity.”
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Naira reverses 7 days gain as CBN sells dollars, extends FX sales to BDCs
“Practices such as unprecedented ways-and-means financing contributed to inflation, currency depreciation, and eroded public confidence. These practices must never return.”
NESG forcarst N1,300 exchange rate
Meanwhile, the Nigerian Economic Summit Group (NESG) has forecasted a massive naira appreciation to an average exchange rate of N1,300 to the US dollar in 2025.
The optimistic projection was stated in its 2025 economic outlook, released on Thursday, January 23, 2025.
According to NESG, the exchange rate forecast was based on higher foreign exchange earnings, driven by increased crude oil sales, revitalised manufacturing output from the oil refining sub-sector, and improved agricultural productivity. Read more:
CBN cancels BDCs renewal licence fee in 2025
Ealier, Henzodaily.ng reported the 2025 licence renewal fee for all Bureau de Change operators has been removed by the CBN
This occurred after the CBN announced updated guidelines for BDC operators to improve oversight and compliance
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Source: Henzodaily.ng