The exchange rate between the United States Dollar (USD) and Nigerian Naira (NGN) remains a key indicator of Nigeria’s economic health. On Sunday, August 10, 2025, the official Dollar to Naira exchange rate stands at approximately ₦1,532.57 per USD. TJ News Nigeria reports that this rate reflects ongoing fluctuations influenced by market dynamics and government policies.
Official vs Parallel Market USD to NGN Rates
In the official foreign exchange market, the Central Bank of Nigeria (CBN) maintains the Dollar to Naira rate near ₦1,532.57 per USD. However, the parallel market rate continues to trade higher, fluctuating between ₦1,580 and ₦1,600 per US Dollar. TJ News Nigeria gathered that this gap highlights persistent forex supply-demand imbalances impacting both consumers and businesses.
USD to NGN Exchange Rate Trends in 2025
Throughout 2025, the Naira has experienced significant volatility against the Dollar. The highest official exchange rate recorded was ₦1,607.05 per USD on May 8, 2025, while the lowest was ₦1,491.37 per USD on February 3, 2025. These shifts reveal challenges faced in stabilizing Nigeria’s currency amid global economic pressures and domestic fiscal policies.
Key Factors Driving the Dollar to Naira Exchange Rate
Several critical elements shape the USD to NGN rate:
- CBN Monetary Policies: Interventions like forex sales and currency supply controls influence official rates.
- Demand for Foreign Currency: Nigeria’s reliance on imports and debt servicing drives demand for the Dollar.
- Global Oil Prices: As Nigeria’s primary export, crude oil price changes affect forex liquidity.
- Parallel Market Speculation: Unregulated forex trading adds volatility to exchange rates.
TJ News Nigeria reports that these combined forces create a dynamic and often unpredictable forex environment.
Impact of Dollar to Naira Exchange Rate Fluctuations on Nigeria’s Economy
Exchange rate movements have direct consequences on inflation, import costs, and foreign investment. A weaker Naira raises the price of imports, increasing living costs, while a stable or stronger Naira helps control inflation and boosts purchasing power. Exporters benefit from a weaker Naira, but excessive volatility may deter investment and hamper economic growth.
Looking Ahead: Outlook and Recommendations
Experts advise Nigerians and businesses to monitor CBN policies and global economic trends closely. TJ News Nigeria reports that Nigeria’s economic recovery depends on forex stability, export diversification, and stronger foreign reserves management. To mitigate risks, it is recommended to transact only with authorized financial institutions and avoid unofficial parallel market dealers.
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