The naira has strengthened beyond the N1,500-to-the-euro mark for the first time since April 2024, supported by improved foreign exchange conditions and a weaker euro in international markets.
The latest Central Bank of Nigeria data showed the naira closing at N1,497 per euro, compared with about N1,684 recorded late last year. The move marks a notable recovery for the Nigerian currency against the European currency.
The improvement has come as the euro has weakened against the US dollar. The euro fell to a 17-month low against the dollar amid concerns about political uncertainty and public finances in major euro zone economies, particularly France.
For Nigeria, the stronger naira-to-euro rate could reduce the local currency cost of imports and other payments denominated in euros. However, the movement against the euro should not be interpreted as an equivalent broad-based strengthening of the naira, since exchange rates are also influenced by movements in the major currencies.
The naira has also remained relatively stable around N1,330 per dollar in the official market, supported by improved foreign-exchange liquidity and reforms in the domestic FX market.
The latest movement puts the naira at a key level against the euro after more than two years above N1,500.
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