As of today Tuesday, 18 February 2025, the Nigerian Naira (NGN) continues to navigate fluctuations in both the official and parallel markets. The exchange rates for the US Dollar (USD), British Pound (GBP), and Euro (EUR) have shown varying trends, reflecting ongoing economic dynamics and policy adjustments.
Official Market Exchange Rates
According to data from the Central Bank of Nigeria (CBN), the official exchange rates for 18 February 2025 stand as follows:
- US Dollar (USD): ₦1,500.41
- British Pound Sterling (GBP): ₦1,868.76
- Euro (EUR): ₦1,557.13
These rates apply to transactions conducted through official banking channels and are influenced by government policies and foreign exchange reserves.
Parallel Market Exchange Rates
In contrast, the parallel market commonly referred to as the black market presents different figures due to supply and demand factors. As of today, the parallel market exchange rates are:
- US Dollar (USD): ₦1,550 (buying) / ₦1,570 (selling)
- British Pound Sterling (GBP): ₦1,960 (buying) / ₦2,010 (selling)
- Euro (EUR): ₦1,600 (buying) / ₦1,620 (selling)
The gap between the official and parallel market rates underscores ongoing challenges in Nigeria’s foreign exchange system, particularly access to forex for businesses and individuals.
Market Analysis and Trends
The fluctuating exchange rates reflect key macroeconomic factors, including:
- Foreign Exchange Supply: Limited access to USD in the official market forces many businesses and individuals to turn to the parallel market, driving up demand and rates.
- Inflationary Pressures: The depreciation of the Naira contributes to inflation, affecting import-dependent industries.
- Government Policies: The CBN’s monetary interventions, including efforts to unify exchange rates, continue to shape market dynamics.
- Oil Price Movements: Nigeria’s foreign reserves, largely dependent on crude oil exports, play a crucial role in exchange rate stability.
Outlook and Implications
Experts predict continued volatility in the foreign exchange market, with projections suggesting a potential range of ₦1,550–₦1,600 per USD in the coming weeks. Businesses reliant on imports may face higher costs, while exporters could benefit from a weaker Naira.
For stakeholders, staying informed on forex trends is essential. Strategies such as hedging against currency risks and exploring alternative financing options remain crucial in navigating Nigeria’s evolving exchange rate landscape.
