The Nigerian naira returned to depreciation against the US dollar at the official foreign exchange market on Friday, ending the week on a negative note despite earlier gains.
According to data from the Central Bank of Nigeria, the naira weakened to N1,539.24 against the dollar on Friday, down from N1,536.08 traded on Thursday, representing a drop of N3.12 on a day-to-day basis.
This depreciation comes after the currency had recorded a significant gain of N13.18 against the dollar on Thursday at the official market, indicating volatility in the exchange rate.
Black Market Performance
In contrast to the official market, the naira appreciated at the parallel (black) market, trading at N1,570 per dollar on Friday, up from N1,580 exchanged on Thursday.
On a week-on-week basis, the naira showed overall improvement in both markets. The currency gained N8.12 at the official market and N30 at the black market when compared to the N1,547.36 and N1,600 exchanged at both markets respectively on Friday, June 20, 2025.
Market Analysis
The fluctuation in the naira's value continues to reflect the ongoing challenges in Nigeria's foreign exchange market. Despite the day-to-day depreciation, the overall weekly performance indicates a gradual strengthening of the currency against the dollar.
Financial analysts suggest that these fluctuations may be attributed to varying levels of dollar supply and demand in the market, as well as broader economic factors affecting Nigeria's currency stability.
The Central Bank of Nigeria continues to implement measures aimed at stabilizing the foreign exchange market and reducing the gap between official and parallel market rates.
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