Naira breaks two-year Euro barrier, trades below N1,500/€

The naira has strengthened beyond the N1,500-to-the-euro mark for the first time since April 2024, supported by improved domestic foreign exchange conditions and a sharp weakening of the euro against the US dollar.

Latest Central Bank of Nigeria (CBN) data showed the naira closing at N1,497 per euro, compared with about N1,684 recorded late last year.

The latest appreciation marks a significant recovery from the period following the 2024 foreign exchange reforms and naira devaluation, when the exchange rate against the euro climbed as high as N1,800.

Analysts, however, cautioned that the movement should not be interpreted entirely as a broad-based appreciation of the naira, as developments in the global euro-dollar market have played a major role.

Jide Babalola, an economist and financial market analyst, said the euro-dollar cross-rates was a major factor behind the latest movement.

“The key factor is the euro-dollar cross-rate. If the euro weakens significantly against the dollar while the naira remains relatively stable against the dollar, the naira will automatically appreciate against the euro,” he said.

Babalola added that improved forex liquidity and recent CBN reforms were helping to reduce speculative pressure on the naira.

The naira has recently remained relatively stable against the dollar, trading around N1,327-N1,330/$ in the official market, while parallel-market rates have largely hovered between N1,370 and N1,39