Naira Depreciates Further as CBN Releases New Exchange Rate

The Nigerian naira continued its decline in the Foreign Exchange Market (NFEM) amid rising demand pressures from USD buyers.

The latest data from the Central Bank of Nigeria (CBN) showed the naira closed at N1,546 to a dollar at the end of trading on Wednesday, March 12, 2025, down from N1,537 the previous day.

Naira Hits New Low Amid Demand Pressure The naira has been in freefall since the second week of March due to dwindling reserves. It recorded its best performance this month on March 3, 2025, exchanging for N1,502 per dollar. On Wednesday, currency dealers quoted the dollar at a high of N1,550 and a low of N1,520.

Experts are urging the CBN to conduct another round of foreign currency interventions to prevent further depreciation, despite warnings from Chatham House against strengthening the naira.

Chatham House Warns Against Stronger Naira Chatham House advised that Nigeria should resist strengthening the naira, arguing that its depreciation makes the economy more competitive. In an article titled “Nigeria’s Economy Needs the Naira to Stay Competitive,” the think tank noted:

“After its depreciation, the naira is better positioned to help the Nigerian economy progress.”

The organization highlighted that a weaker naira has improved Nigeria’s Balance of Payments and facilitated capital inflows, helping the CBN boost its foreign exchange reserves to prudent levels.

Calls to Defend the Naira Contrary to Chatham House’s stance, some economists are advocating for immediate intervention. Janet Ogochukwu, an economist and senior banker, emphasized:

“One of the main drivers of inflation in the country is the exchange rate. Nigeria is an importing country and so needs foreign goods to survive. The call not to strengthen the naira does not factor in local dynamics such as low production and escalating living costs, which are squeezing households.”

She further criticized foreign advisors for failing to grasp Nigeria’s unique economic challenges.

As the naira continues its downward trend, the debate intensifies over whether Nigeria should allow market forces to dictate the currency’s value or intervene to stabilize the economy.