This is a result of the ongoing structural volatility and demand-supply dynamics in Nigeria’s foreign exchange (FX) market, caused by supply-demand imbalances, market structure & volatility, and the policy & monetary environment.

At the CBN’s NFEM Windows during the session, the Naira traded between an intra-day high of ₦1,459.99/$ and a low of ₦1,450/$, with the average rate at ₦1,452.13/$.

According to Aboki FX, the parallax market, also known as the Black Market, the Naira-to-Dollar rate closed with a buy rate of ₦1,460 and a sell rate of  ₦1,470. The Naira-to-Pound closed with a buy rate of  ₦1,910 and a sell rate of  ₦1,940.

Additionally, the Naira-to-Euro ended the day at ₦1,665 buy rate and ₦1,690 sell rate, the Naira-to-Canadian-Dollar rate ended at ₦1,150 buy rate and ₦1,250 sell rate.

GT Bank’s Daily FX Rate for International Transactions closed at ₦1,457/$.

The decline shows cautious market sentiment following last week’s underperformance of the Nigerian currency against the US dollar, which ended the week lower.

In the parallel market, the naira traded at N1,605/$1, a 0.19% appreciation from Friday’s closing rate of N1,608/$1.

Meanwhile, the British pound opened the week at N2,032/£1, down slightly from N2,030/£1. The naira, however, held steady against the euro, maintaining a rate of N1,705/€1.

The growing demand pressure in the Nigerian Foreign Exchange Market is weighing on the naira. Despite the publication of the Balance of Payment report by the Central Bank of Nigeria (CBN) last week, highlighting a boost in Nigeria’s external reserve, the market pressure did not dwindle as the naira continued to witness significant pressure and the value of the naira continued to fall.

The CBN’s intervention has helped the currency in the foreign exchange market, and the continuous support of the CBN will be paramount in stabilizing the market.

A report by investment firm, AIICO Capital Limited, said the naira depreciated by approximately 3 per cent over the month, sliding from ₦1,492.49/$ to ₦1,536.82/$ despite CBN’s dollar injections totalling $668.8 million.

The Central Bank of Nigeria (CBN) deployed approximately $669 million in foreign exchange (FX) interventions during the first quarter of 2025, according to the report.

The funds were to shield the naira from further depreciation amid dwindling dollar inflows and surging offshore demand for foreign exchange.

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The market opened the month at ₦1,510/$, with demand remaining elevated, particularly from foreign portfolio investors and local corporations. The parallel market reflected similar strain, with the naira falling by ₦43.50 to close at ₦1,536.00/$.

Although mid-month liquidity saw a temporary boost from CBN interventions, demand continued to outweigh supply.

By the end of the quarter, the naira remained under pressure, even with additional dollar sales and minor gains.

On a quarterly basis, the currency posted a modest depreciation at the NFEM window, while external reserves declined to $38.31 billion.

The report also said that in a bid to stabilise the parallel market, the CBN instructed Bureau de Change (BDC) operators to purchase $25,000 from authorised dealer banks at the official exchange rate.

Despite these interventions, the country’s external reserves took a hit, reversing from a three-year peak of $43 billion due to debt service obligations and continued dollar sales to support the naira.