New exchange rate as naira falls against US dollar, pound, euro in official, black markets

The Nigerian currency, the naira, performed poorly against the dollar, euro, and British pound sterling in the forex market on Monday, January 6.

According to data from FMDQ securities, the value of the naira closed against the dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) at N1,536.58/$1.

Monday's exchange rate represents a 0.16% or N2.53 depreciation compared to last Friday's price of N1,534.05/$1.

It was a similar scenario in the parallel market on Monday, as the naira value dropped against the US dollar. BDC trader Abdullahi told Legit.ng that the value of the naira dropped by N5.

"The market for the naira was not favorable, as it lost N5 of its value, exchanging at N1,655/$1 compared to Friday's rate of N1,650.

"It is now difficult to predict what to expect in the market, and our rates are determined by customer demand."

Naira against other foreign currencies

The CBN data shows that the naira exchange rate also fell against Monday's British pound sterling and the euro.

The apex bank stated that at the end of Monday's trading session, the naira exchanged against the pound sterling at N1,916.24/£1 compared to Friday's closing rate of N1,902.55/£1.

Also, against the euro, the naira fell to N1,590.81/€1 from the previous rate of N1,579.52/€1.

Here is a snapshot of CBN naira exchange rates

CFA: N2.41

Yuan/renminbi: N209.69

Danish krona: N213.23

Euro: N1,590.81

Yen: N9.76 Riyal: N408.37

South African rand: N82.54

Swiss franc: N1,694.22

Pounds sterling: N1,916.24

Tinubu promises for naira

There are high expectations that the naira will record a better performance in 2025 following the promises of President Bola Tinubu.

At his budget presentation, the president promised that the naira would recover and close to N1,500 by year-end.

However, this sentiment is not shared by prominent financial companies.

According to a new report by Lagos-based investment and research firm Afrinvest, titled "Beyond The Rhetorics: Transforming Reforms into Tangibles," the naira is projected to depreciate to a weighted fair value of N1,804.45.