Banks, Authorised Dealers Sell Dollar at New Rate as External Reserves Exceed $41 Billion
- Nigeria’s foreign exchange market witnessed another downturn on Wednesday, August 20, 2025
- The local currency depreciated in the official and parallel markets, but FX disparity remained low at N20
- However, data from the Central Bank of Nigeria (CBN) showed that the country’s external reserves crossed $41 billion again
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian currency, the naira, depreciated in the Nigerian foreign exchange market as data showed a significant rise in foreign currency payments for importers and other eligible players.
Data from the Central Bank of Nigeria (CBN) showed that the naira dipped to N1,536.73 per dollar in the official window on Wednesday, August 20, 2025, as demand grew for the US greenback.
Source: Getty Images
Naira depreciates
The foreign exchange spot rate rose to an intra-day high of N1,538 and a low of N1,534 per dollar.
The Wednesday spot rate contrasts sharply with the N1,535.50 recorded the previous day, showing rising pressures at the official market in the absence of dollar support from the apex bank.
Analysts at AIICO Capital Limited said that the local currency depreciated due to increased FX demand and low supply.
The naira depreciated by 12 basis points, trading between N1,534.00 and N1,538.50 to close at N1,536 per dollar.
The AIICO report said that the naira should level against the dollar in the coming days.
Disparity remains low
In the parallel segment of the foreign exchange market, the local currency depreciated to N1,550 per dollar amid rising demand.
Yet, FX disparity between the official and parallel markets remained close at N20.
According to a report by Market Forces Africa, banks are still selling dollars to customers at N1,545 to N1,550 as speculative activities reduce.
The naira depreciation happened despite a rise in Nigeria’s gross external reserves.
FX reserves climb
CBN's balance sheet showed that Nigeria’s external reserves crossed $41 billion again as forex inflows surged from sources as oil output increases.
Amid the naira’s depreciation, reports say oil prices rose almost two per cent on Wednesday, August 20, 2025, after US crude inventories posted a weekly decline, while investors kept an eye on Ukraine peace talks with Russian sanctions still in place.
Data from the commodities market shows that Brent crude gained $1.01, selling at $66.81 per barrel, and WTI rose by 95 cents to $63.30 per barrel.
Oil prices climb
Gold prices fell amid expectations of the Jackson Hole symposium.
Experts say oil prices are likely to stay high as Russia plans to continue supplying oil to India amid US warnings.
Source: Getty Images
Russian officials confirmed this and expressed hope for bilateral talks with Delhi and China.
CBN injects $166m into forex markets
Legit.ng earlier reported that the naira remains under pressure despite the Central Bank of Nigeria’s (CBN) latest efforts to keep it afloat.
In the past week, the apex bank sold $166 million to authorised dealer banks to stem rising demand for the U.S. dollar at the official window.
The Nigerian foreign exchange market recorded a mixed yet relatively stable week, buoyed by CBN’s intermittent interventions.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
