As of today the 27th of January 2025, the Nigerian Naira (NGN) exhibits the following exchange rates against major currencies:
Official Rates:
- US Dollar (USD): ₦1,627 per USD
- Euro (EUR): ₦1,688 per EUR
- British Pound Sterling (GBP):₦2,000 per GBP
Parallel Market Rates:
- US Dollar (USD): ₦1,650.00 per USD
- Euro (EUR): ₦1,701 per EUR
- British Pound Sterling (GBP): ₦2,030 per GBP
Factors Influencing the Naira’s Exchange Rates
The Naira’s valuation is subject to various factors, including:
- Foreign Exchange Demand: High demand from importers and manufacturers continues to exert pressure on the Naira. Despite interventions by the Central Bank of Nigeria (CBN), the disparity between demand and supply persists in both official and parallel markets.
- Global Interest Rate Trends: Recent interest rate hikes by central banks in developed economies have strengthened currencies like the USD, GBP, and EUR, making it more challenging for emerging markets such as Nigeria to stabilise their currencies.
Historical Context
In the latter half of 2024, the Naira experienced significant fluctuations. For instance, on 27 November 2024, the USD/NGN exchange rate peaked at ₦1,685.62, while on 10 December 2024, it dipped to ₦1,529.14.
Outlook
The Naira’s performance remains influenced by both domestic economic policies and global financial trends. Stakeholders are advised to monitor official channels for the most current information.