The naira maintained stability in the black market early Saturday, trading between ₦1,570 and ₦1,575 against the U.S. dollar in Lagos.
This steadiness reflects growing market confidence, driven by the Central Bank of Nigeria’s (CBN) proactive measures to narrow exchange rate gaps and boost foreign currency inflows.
While the CBN’s strategy of selling U.S. dollars to banks and allowing informal currency traders access to forex at official rates has supported the naira, uncertainties linger. Comercio Partners has projected ₦1,700/$ as the worst-case scenario for the naira in the first half of 2025, signaling potential pressure ahead despite current stability.
U.S. Dollar Index Slips to Nine-Week Low
Globally, the U.S. dollar index dropped to its lowest point in nine weeks, influenced by hopes of a peace deal between Russia and Ukraine and softened expectations around U.S. trade penalties. Former President Donald Trump’s optimistic remarks about a potential resolution to the conflict dampened demand for the safe-haven dollar.
Additionally, weak U.S. retail sales data for January heightened speculation that the Federal Reserve might cut interest rates twice this year. As traders bet on lower rates, the dollar weakened, benefiting the euro and other currencies.
Trump’s economic team has been instructed to prepare retaliatory tariffs on countries taxing U.S. goods, with a report due by April 1. Treasury Secretary Scott Bessent also hinted at investigations into currency manipulation, while Trump’s plan to impose taxes on foreign automobiles starting April 2 could further shake global markets.
CBN Warns Banks Over ATM Fees
In Nigeria, the CBN clarified its policy on ATM withdrawal fees, stating that charges for using other banks’ ATMs apply only when withdrawals exceed the ₦20,000 limit per transaction. The apex bank stressed that while financial institutions can charge lower fees based on their operational costs and business models, they are not permitted to exceed the caps set in its guidelines.
To avoid unnecessary charges, the CBN encouraged customers to use their own bank’s ATMs and explore alternative payment methods such as POS terminals, mobile banking apps, and electronic transfers.
