Naira Weakens Across Forex Markets Following Trump’s 90-Day Tariff Pause

The naira weakened against the US dollar on Wednesday across both the official and parallel foreign exchange markets, following President Donald Trump’s announcement of a 90-day pause on global tariffs, excluding China.

Data from the Central Bank of Nigeria revealed that the naira depreciated to N1,628.93 per dollar, down from N1,611.55 the previous day—a loss of N17.38 in just 24 hours. This came after the currency had shown a modest 60 kobo gain earlier in the week.

The decline was also evident in the black market, where the naira traded at N1,620 per dollar, falling from N1,575 on Tuesday. A Bureau de Change operator in Wuse Zone attributed the drop to increased demand, noting that the dollar was bought at around N1,610 and sold at N1,620 on Wednesday.

This depreciation occurred despite positive economic news from the Central Bank of Nigeria, which reported a $6.83 billion surplus in the country’s balance of payments and a significant rise in diaspora remittances, reaching $20.93 billion in 2024.

Trump’s tariff pause, announced on Wednesday, excludes China and has sparked fresh reactions in global financial markets, influencing currency movements in emerging economies like Nigeria.