The Nigerian naira fell against the U.S. dollar at the official market, closing at N1,604.00/$1 on Tuesday, down from N1,599.00/$1 on Monday, based on Central Bank of Nigeria (CBN) data.
In the parallel market, the naira also came under additional pressure, trading at N1,618/$1 on Tuesday, compared to N1,605/$1 the previous day.
The naira also depreciated against the other major currencies, exchanging at N2,115.25 against the British Pound.
On the simple average rate, Naira appreciated slightly against the dollar by 0.25% to close at N1601/$1 on Tuesday as against N1605/$1 on Monday.
The naira-for-crude transaction, continued by the federal government together with the Nigerian National Petroleum Corporation (NNPC Limited) and Dangote Refinery, saw a reduced demand pressure on the naira.
Nigeria, an oil-exporting country, is battling fresh economic challenges in the wake of the recent slump in crude oil prices, triggered by global tariffs. Exports of crude oil generate approximately 90% of Nigeria’s foreign exchange revenues.
The appreciation of the naira in the simple average rate can be attributed to the recent 90-day suspension of U.S. tariffs on key trading partners, last week. The naira has gained N38 since the tariff pause announcement, appreciating by 2.3%, from N1639/$1 on Wednesday last week to N1,601/$1 on Tuesday.
CBN has continued to advocate for greater transparency and data reporting, recording a net foreign exchange position of more than $6 billion, and a 9% increase in diaspora remittances valued at $20.98 billion.
