The Nigerian naira experienced a significant decline against the US dollar on Thursday, following US President Donald Trump’s announcement of a new 10% global trade tariff. The naira lost 1.3% of its value, falling by N20.75 to close at N1,552.53, compared to N1,531.25 the previous day. This sharp drop marks a concerning shift in the country’s official foreign exchange market, according to data from the Central Bank of Nigeria (CBN).
The naira also weakened in the parallel market, depreciating by N5 to close at N1,560, down from N1,555 the day before. The combination of the tariffs and market uncertainty has led to increased pressure on the Nigerian currency. Analysts are closely monitoring the ongoing fluctuations as they could further destabilize the country’s economy.
In addition to the currency’s decline, Nigeria’s external reserves have seen a minor decrease, falling by 0.3% to $38.17 billion as of April 2, 2025. This decline follows a reduction from $38.30 billion recorded in late March. The shrinking reserves signal potential challenges ahead in managing foreign exchange volatility and securing economic stability.
Global markets have also been affected by Trump’s trade policy, with oil prices falling sharply. Brent crude dropped 3.2% to $72.52 per barrel, while West Texas Intermediate fell below $70. These declines are attributed to heightened fears of a global economic slowdown as trade wars escalate, especially with major economies like China and the European Union facing tougher tariffs.
Source: Business day