The Nigerian naira weakened to N1,541.36/$ on the first trading day of 2025, marking a 0.36% depreciation from the 2024 closing rate of N1,535.82/$. Some authorised dealers quoted the dollar at N1,545/$, an improvement from the N1,550/$ quoted on Tuesday. The parallel market saw the naira close at N1,655/$ compared to N1,670/$ on Tuesday.
In 2024, the naira depreciated by 40.9% compared to the official rate of N907.11/$ at the end of 2023. This significant depreciation follows the Central Bank of Nigeria’s (CBN) foreign exchange policies aimed at improving market transparency and attracting foreign investors.
The introduction of the Electronic Foreign Exchange Matching System in December provided some stability for the naira. Meanwhile, the money market saw downward movements in the Nigerian Interbank Offered Rate, signaling liquidity, while FGN bond trading remained subdued.
In the Eurobonds market, buy pressure led to a 6 basis points decrease in the average yield to 9.62%.