How the naira hit five-month low as CBN intervenes

• The Nigerian currency depreciated to its lowest successful 5 months to N1,600 successful the authoritative Nigerian Foreign Exchange Market (NFEM)
• The naira’s depreciation successful the authoritative model further widened the spread betwixt the authoritative and parallel marketplace windows
• Meanwhile, the Central Bank of Nigeria (CBN) intervened successful the FX marketplace with income of $197.71 cardinal to dealers

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

The authoritative and parallel marketplace windows person drifted further isolated arsenic the naira deed a five-month debased successful the Nigerian Foreign Exchange Market (NFEM).

On Friday, April 4, 2025, the naira depreciated to N1,600 per dollar, down from N1,569 it traded the erstwhile day.

CBN intervenes successful the forex markets amid naira worst show successful 5 months Credit: NurPhoto
Source: Getty Images

The naira hits a five-month low

The past clip the naira traded adjacent that complaint was connected December 3, 2024, erstwhile it exchanged astatine N1,608 per dollar.

The December depreciation came soon aft the Central Bank of Nigeria (CBN) recently launched the NFEM to boost transparency and liquidity.

The apex slope past mandated banks and currency dealers to migrate to the Bloomberg BMatch System to guarantee transparency.

Experts accidental Friday’s naira depreciation was expected arsenic the CBN prolonged its involution successful the forex markets.

CBN intervenes successful the FX market

However, connected Saturday, April 5, 2025, CBN intervened by releasing $197.71 cardinal into the FX marketplace to boost liquidity.

CBN Director of the Financial Markets Department, Omolara Duke, stated successful a play circular that the transfer was conducted done income to authorised dealers. 

According to Duke, the enactment addressed the increasing volatility successful planetary fiscal markets. 

This came aft the United States slapped caller import tariffs connected respective economies.

The CBN attributed these changes to the planetary marketplace turbulence caused by U.S. tariffs. 

Additionally, the terms of crude lipid fell much than 12% to astir $65.50 per barrel, further straining countries that export oil, specified arsenic Nigeria. 

On April 4, 2025, the CBN provided US$197.71 cardinal to combat this. 

“In enactment with its committedness to ensuring capable liquidity and supporting orderly marketplace functioning, the CBN facilitated marketplace enactment connected Friday, April 4, 2025, with the proviso of US$197.71 cardinal done income to Authorised Dealers,” CBN said. 

The slope emphasised that this enactment advances its nonsubjective of having a stable, open, and effectual overseas speech market.

The naira depreciates successful the achromatic market 

Meanwhile, the naira besides depreciated successful the parallel marketplace connected Friday, April 4, 2025, trading astatine N1,565 from N1,560.

The speech complaint windows widen arsenic the naira falls to the lowest successful the authoritative window. Credit: Novartis
Source: Getty Images

Data from the CBN shows that dealers quoted the dollar astatine a precocious of N1,625 and a debased of N1,519 connected Friday, April 4, 2025.

Naira experiences biggest autumn successful 2025

Legit.ng earlier reported that the Nigerian naira hit its lowest successful 30 days connected Thursday, April 3, 2025, successful the authoritative Nigerian Foreign Exchange Market (NFEM).

CBN information shows that the naira depreciated to N1,569 per dollar from N1,534 the erstwhile day.

The depreciation is the lowest the section currency has gone successful implicit 30 days arsenic analysts fearfulness it mightiness autumn disconnected the N1,500 ceiling against the dollar.

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Source: Legit.ng