Trump’s tariff war: Naira Records Highest Ever Depreciation to Dollar Amid Trade Tensions

In the wake of US President Donald Trump’s tariff decision, the Nigerian naira saw its biggest decline against the dollar this week on the official foreign currency market.

According to exchange data from the Central Bank of Nigeria, it fell from N1,531.25 per dollar on Wednesday to N1,552.53 on Thursday.

In comparison to the N1,531.25 exchanged the day before, the naira fell by N21.28 against the dollar on Thursday.

According to reports, since March 22, when the currency fell by N18.96 weekly at the official market, this is the most depreciation against the dollar in a single day.

Likewise, in the illicit market, the value of the naira dropped by N5 on Thursday, from N1,555 to N1,560 per dollar on Wednesday.

The event occurs in spite of the CBN’s declaration that the nation’s Net Foreign Exchange Reserve (NFER) reached $23.11 billion at the end of 2024, the highest level in more than three years.

Following Trump’s administration’s tariff announcement on Wednesday, which caused worldwide indignation, the naira fell on both official and parallel foreign exchange markets.

Trump’s 10% baseline tariffs, according to economic experts, would impact $10 billion in trade between the US and Nigeria.

In a statement released Thursday, Dr. Muda Yusuf, the CEO of the Center for the Promotion of Private Enterprise, claimed that Trump’s tariff will have an impact on Nigeria’s economy because it terminated the African Growth and Opportunity Act.

The head of the CPPE said, “This could have implications for the naira exchange rate.”

Source: DAILY POST

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