Despite the euro strong rally against the U.S. dollar in international currency markets, the Nigerian naira held relatively steady on the parallel market, offering some stability amid global financial turbulence.
On Monday, the euro to naira (EUR/NGN) rate reached N1,845 on the unofficial market, breaching the N1,800 threshold and signaling a potential uptrend. This development reflects increased demand for euros and underscores the significance of Nigeria’s black market in gauging true forex availability, particularly given the Central Bank of Nigeria’s (CBN) continued controls on the official market.
According to a 9am News report, the unofficial market continues to serve as the main access point for many Nigerians seeking foreign currency for imports, travel, and remittances, due to limited access through official channels.
Euro Rises as Dollar Weakens Under Global Trade Pressure
Globally, the euro (EUR/USD) climbed over 1%, surpassing the 1.15 level for the first time since 2022. This surge followed a combination of safe-haven buying and growing skepticism around the U.S. dollar, which has been under pressure from renewed trade tensions between the U.S. and major global economies.
The U.S. Dollar Index (DXY) plunged to 98.2, its weakest level since March 2022. Analysts link the dollar’s decline to President Donald Trump’s latest policy moves, including the launch of a formal probe into potential tariffs on critical mineral imports and escalating confrontations with key trade partners like China.
Compounding the dollar’s troubles are fresh concerns about the independence of the U.S. Federal Reserve. White House economic adviser Kevin Hassett confirmed that the Trump administration is reviewing the legal feasibility of removing Federal Reserve Chairman Jerome Powell.
This has raised alarms across financial markets, with U.S. Senator Elizabeth Warren warning of a looming financial crisis. In an interview with CNBC, she stated that removing the Fed Chair for political reasons would shatter investor trust and destabilize monetary policy.
“If a President can fire the Fed Chair at will, then our economy’s credibility is dead. That’s not a democracy—that’s dictatorship economics,” she warned.
Back in Nigeria, economic observers are closely watching how the local currency holds up. Analysts suggest that the naira’s stability amid the euro’s global rise could be temporary unless structural reforms and stronger export earnings are achieved.
Only a competitive and stable naira can help transform Nigeria into a more diversified, investment-driven economy. With the euro strengthening and the U.S. dollar weakening, Nigeria’s forex dynamics remain highly sensitive to global monetary shifts and domestic policy direction.
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