Naira Drops Below N1,500 Against Euro for First Time in 2024

The Nigerian Naira has breached a key resistance level against the Euro, closing at N1,497/€ for the first time since April 2024. This shift comes as the Euro weakened to its lowest point since May 2025 against the US dollar, influencing cross-rates in Nigeria's foreign exchange market.

Data from the Central Bank of Nigeria (CBN) shows the Naira's depreciation against the Euro, a notable change from earlier in 2023 when the rate remained below N1,000/€. Following FX market reforms and naira devaluation in 2024, the rate had climbed as high as N1,800/€ before this recent decline.

The EUR/NGN pair has seen significant bearish trends, dropping from N1,684/€ late last year to its current level. Meanwhile, the Naira has remained stable against the US dollar in the official market, trading between N1,327/$ and N1,330/$, supported by CBN liquidity injections and steady foreign reserves.

Market reforms, tighter monetary policy, and increased transparency in official currency windows have helped mitigate speculative demand. The Dangote Refinery's reduced reliance on imported petroleum products has also conserved FX reserves, while strong agricultural exports and high crude oil prices have boosted Nigeria's forex surplus with the Eurozone.

Globally, the Euro's depreciation has been driven by political and fiscal instability in the Eurozone, particularly concerns over early elections in Spain and rising premiums for French debt. These factors have contributed to selling pressure, with the Euro dropping 0.8% to $1.1161 during Asian trading sessions.