The naira yesterday depreciated to ₦1,629 per dollar in the Nigerian Foreign Exchange Market (NFEM) despite an intervention of $688.8 million by the Central Bank of Nigeria (CBN).
Data published by the apex bank showed that the indicative exchange rate for the naira rose to N1,629 per dollar from N1,600 per dollar last week Friday, indicating N29 depreciation for the naira.
Likewise, the naira depreciated to N1,570 per dollar in the parallel market from N1,565 per dollar last weekend.
Consequently, the margin between the parallel market and NFEM rate widened to N59 per dollar from N35 per dollar last weekend.
Also, the naira depreciated by 2.4 per cent and 2.6 per cent in March at both the Nigerian Autonomous Foreign Exchange Market window and the parallel market compared to the previous month.
According to the latest Afrinvest Monthly Market Report titled ‘Analysing Global and Nigerian Economies & Financial Markets’, the naira dropped to N1,536.82/$ and N1,530.00/1.00 at the NAFEM window and parallel market, respectively.
AIICO Capital, in its monthly macroeconomic market report in March, also confirmed that the naira came under a lot of demand pressure
“The naira experienced significant depreciation in March 2025 due to persistent demand pressure in the (Nigerian) foreign exchange market.
“Despite the Central Bank of Nigeria intervening with substantial dollar sales totalling $668.8m, the naira weakened by 2.97 per cent m/m, closing at N1,536.82/$ from N1,492.49/$ at the start of the month,” stated AIICO Capital.
In the period under review, demand remained robust, particularly from foreign portfolio investors and local corporations. AIICO Capital said that the parallel market mirrored this trend, depreciating by about N43.50/$ to N1,536.00/$.
Although liquidity improved mid-month with CBN interventions, demand continued to outstrip supply.
“In the final week, despite continued CBN dollar sales and a slight appreciation of 0.5 0.5 bps, the naira remained under pressure. On a quarterly basis, the naira depreciated by 7 bps q/q at the NFEM window. Meanwhile, external reserves fell by c.$110m to $38.31bn,” AIICO Capital further stated.
In terms of outlook, the investment house sees the CBN sustaining liquidity to stabilise the naira in the near term. “However, global risks—like US tariffs and retaliatory measures—may spur volatility and capital flight,” the report concluded.
In the past week, the naira recorded heightened volatility at the interbank Nigerian Foreign Exchange Market.
Early in the week, it remained relatively stable, trading between N1,525–N1,535/$ on the back of consistent CBN support and moderate offshore inflows.
However, by midweek, there was a sharp reversal as offshore demand surged, compounded by weakened oil prices following OPEC+’s supply hike and global risk-off sentiment driven by Trump’s tariff announcements.
This led to strong FX demand pressure and limited supply, pushing the naira to as high as N1,570/$. Despite CBN’s intervention, the naira depreciated by 1.97 per cent w/w to close at N1,567.02/$, and foreign reserves declined by $149m to $38.15bn.
