The Nigerian naira depreciated in the official foreign exchange market on Wednesday, March 26, 2025.

At the end of trading, the local currency depreciated by N5, closing at N1,537.62 per dollar from N1,532.90 the previous day.

The dollar’s high demand depreciates the naira

The local currency’s fall came amid high demand for the US dollar, as petroleum product marketers speculated that the Dangote Refinery's decision to halt the sale of fuel in naira could put the currency under pressure.

They speculated that demand for the dollar would further erode the gains the Central Bank of Nigeria achieved in stabilising the naira.

The naira has gained relative stability, often closing at N1,500 per dollar in the official Nigerian Foreign Exchange Market (NFEM), while teetering around the N1,600 ceiling in the parallel market.

Expert urges the CBN to intervene

Experts have advocated for further interventions by the CBN to keep the naira from depreciating below its current value.

The calls came following Chatham House warnings, a UK Think-tank, against strengthening the naira, saying that the currency has become more competitive in the FX market.

But senior banker and economist, Janet Ogochukwu, thinks Chatham House's advice is anti-naira and should be ignored.

“Our currency is weak because it is not competitive. It is not competitive because we are an import-dependent nation. How can you tell a country that imports virtually everything not to defend its currency?

That advice is terrible and should be discarded in its entirety,” she said.

However, on Wednesday, March 26, 2025, currency dealers quoted the dollar at a high of N1,541 to a dollar and a low of N1,528, leaving a margin of N13.

Meanwhile, the naira remained flat in the parallel segment of the foreign exchange market, trading at N1,580 per dollar, the same as the previous day’s rate.

CBN sends warning to currency speculators

The development came amid warnings by the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, to currency speculators.

The CBN boss assured that the apex bank remained committed to upholding order in the nation's foreign exchange market by locating and removing dishonest players whose actions jeopardise the naira's stability.

The naira fell slightly on Tuesday's official foreign currency market, closing at N1,532.39/$ as opposed to N1,531.19/$ on Monday, March 24, 2025, according to the data.

On the Bureau De Change segment, the exchange rate stayed steady at N1,570/$ for both days, reflecting a steady spread between the official and parallel market rates.

This represented a marginal decline of 0.08%, indicating relative stability despite minor market fluctuations.

The Punch reported that the movement suggested continued volatility within a narrow band as the market adjusted to recent reforms and changing demand-supply dynamics.