Victor EzejaThe Nigerian naira appreciated against the US dollar at the official window of the foreign exchange market on Thursday.
Official exchange rate closed at ₦1,630 per dollar on Thursday, according to data published on the Central Bank of Nigeria (CBN) website.
Join our WhatsApp ChannelThis means the naira appreciated by ₦14 or 0.9 per cent against the dollar when compared to Wednesday’s closing rate of ₦1,644 per dollar.
The gap between the official and parallel or black market rates closed as the naira also ended at ₦1,630 in the black market on Thursday.
The naira has continued to experience volatility in the forex market despite CBN’s intervention through FX sales to authorized dealers.
Analysts believe the volatility in the forex market is due to a mix of local and global uncertainties.
The apex bank had on Saturday announced that it sold $197.71 million to authorised dealers last week to boost liquidity in the forex market. This came a few days after the United States president, Donald Trump, announced sweeping global tariffs on all exports to the country. Nigeria received 14 per cent.
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The CBN said the tariff increase has triggered a period of adjustment across global markets, hence the need for the dollar sale.
The apex bank further intervened by selling $135.45 million at rates between $/₦1,500 and $/₦1,636.
Nigeria’s external reserves dropped by $120.22 million in one week from $38.17 billion on 2 April to $38.05 billion as of 9 April 2025. This decline of the external reserves has been attributed to CBN’s intervention in the Forex market through dollar sales to boost FX liquidity and keep the naira stable.
This comes as oil prices have been reeling from the shock of Trump’s tariff offensive and the retaliatory action by China, which has led to a global trade war. Crude oil prices dropped over 4% on Thursday, 10 April 2025. The U.S. West Texas Intermediate (WTI) crude fell by $2.66, or 4.27%, to settle at $56.69 per barrel, while Brent crude dropped $2.64, or 4.03%, to $62.84.
Although Trump announced a 90-day pause in implementing the reciprocal tariff, he excluded China, which he raised to 125 per cent. In retaliation, Beijing announced an 84 per cent tariff rate on goods imported from the U.S. with effect from April 10.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
