The Nigerian Naira showed signs of recovery on Thursday, November 20, 2025, bouncing back from its most significant decline in recent weeks against the US dollar in the official foreign exchange market.
Naira's Rollercoaster Performance
According to official data from the Central Bank of Nigeria (CBN), the national currency closed trading at N1,452.13 per dollar on Thursday, marking a noticeable improvement from Wednesday's rate of N1,454.18. This recovery comes after the Naira experienced a substantial drop of 0.47% or N6.75 against the American currency the previous day.
Financial market traders attributed Wednesday's decline to tightening foreign exchange liquidity and limited intervention from the apex bank. Recent CBN dollar sales have typically been capped around $50 million per auction, prompting increased caution among banks and corporate buyers in the market.
Mixed Performance Across Currencies
Thursday's trading session revealed varied performances for the Naira against other major global currencies in the official market. The CBN's daily update indicated that against the Euro, the currency settled at N1,674.75, showing some depreciation from midweek levels when it closed at N1,683.36 per Euro.
Meanwhile, the Naira demonstrated modest improvement against the British Pound Sterling, with Thursday's rate closing at N1,900.70, better than Wednesday's N1,907.89. Here are other key exchange rates from Thursday's trading:
- CFA: N2.57
- Yuan/Renminbi: N204.11
- Euro: N1674.75
- Pounds Sterling: N1900.70
- South African Rand: N84.38
Parallel Market Struggles Continue
The Naira faced challenges in the parallel market, commonly known as the black market, where it recorded another poor performance. Abdullahi, a Bureau de Change operator, confirmed to journalists that the dollar selling rate increased to N1,470 on Thursday, up from N1,460 previously.
Similarly, the British Pound maintained a selling rate of N1,920, while the Euro traded at N1,888 in the unofficial market, indicating persistent pressure on the Nigerian currency outside the regulated exchange windows.
Foreign Reserves Provide Hope
Despite the short-term volatility, positive sentiment in the market has been supported by significant improvements in Nigeria's foreign reserves. CBN Governor Olayemi Cardoso, represented by Deputy Governor for Economic Policy Muhammad Abdullahi, revealed that Nigeria's foreign exchange reserves climbed to $46.7 billion as of November 14, 2025.
This reserve level represents the highest in seven years and can cover more than 10 months of imports, reflecting improving economic conditions and rising foreign appetite for Nigerian assets. Market analysts attribute the reserve growth to recent Eurobond issuance, inflows from offshore investors, exporter contributions, and crude oil sales.
While traders caution that Thursday's slight gains may not yet signal a strong trend reversal, expectations remain positive given the substantial foreign reserve buffer that provides the Central Bank with significant firepower to defend the Naira when necessary.
