Naira weakens further to N1,606/$1 at official market

Business, Economy April 23, 2025April 23, 2025 Akan Victor

The naira depreciated to N1,606.00/$1 Today Wednesday, April 23, 2025, at the official foreign exchange market.

This is according to data obtained from the Central Bank of Nigeria (CBN) website on Tuesday.

This marks a marginal decline compared to N1,600.50/$1 recorded on Thursday, 17 April 2025, the last trading day before the Easter holidays.

This represents a depreciation of N5.50 or 0.34% over the four-day holiday period, signaling continued pressure on the local currency amid liquidity concerns and sustained demand for dollars in the market.

Parallel Market Trends 

In the parallel market, also known as the black market, the naira also weakened slightly, trading at N1,615/$1 on Tuesday, compared to N1,610/$1 on Thursday before the break. This represents a depreciation of N5, based on market data compiled by Nairametrics.

  • This development was confirmed by a Bureau De Change (BDC) operator in Wuse Zone 4, Abuja on Tuesday.
  • The sustained disparity between the official and parallel market rates continues to reflect challenges in Nigeria’s foreign exchange management despite recent policy reforms aimed at unifying the exchange rate system.

Market Reactions and Analyst Insights 

Market analysts attribute the slight depreciation to a combination of factors, including limited dollar inflows during the holiday period, speculative demand, and delayed intervention from the CBN.

While the apex bank has taken steps in recent weeks to stabilize the naira, including foreign currency injections and the clearance of FX backlog, pressures remain on the supply side.

“The fact that the naira weakened across both official and parallel markets after the holidays indicates lingering concerns over FX liquidity,” Raheem Obadofin, a Lagos-based forex trader, said.

“Market participants are still cautious, and demand continues to outpace supply,” he noted.

Credit: Nairametrics

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