The Nigerian naira experienced its highest depreciation against the dollar this week at the official foreign exchange market, following U.S. President Donald Trump’s announcement of new tariffs.
The Central Bank of Nigeria (CBN) reported that the naira dropped to ₦1,552.53 per dollar on Thursday, compared to ₦1,531.25 traded on Wednesday.
Key Details:
- Magnitude of Depreciation: The naira slumped by ₦21.28 against the dollar on Thursday, marking the steepest single-day depreciation since March 22, 2025.
- Parallel Market Impact: In the black market, the naira weakened by ₦5, closing at ₦1,560 per dollar compared to ₦1,555 on Wednesday.
- Economic Context: Trump’s tariff announcement, which includes a 10% baseline tariff on imports, has sparked global economic concerns. Experts warn that the tariffs could disrupt U.S.-Nigeria trade worth $10 billion and further strain Nigeria’s economy.
- CBN’s Reserves: Despite the depreciation, the CBN highlighted that Nigeria’s Net Foreign Exchange Reserve (NFER) stood at $23.11 billion, the highest level in over three years.
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