- The United States dollar has dropped by N50 in the parallel foreign exchange market
- The naira also improved against the euro and British pound, as the rates also adjusted slightly
- Nigerian currency is having one of its best runs in recent weeks, and there are expectations it will continue
Legit.ng journalist Dave Ibemere has extensive experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The US dollar has fallen sharply by N50 in the parallel market, also known as the black market, with traders quoting new buying and selling rates.
The fall of the dollar comes as the naira exchanges at one of its highest levels in recent months in the official markets.
Source: Getty Images
Naira appreciates against dollar in black market
Legit.ng spoke to traders on Monday, February 3, in the parallel market, and they confirmed that the dollar has depreciated by N50 since the start of 2026.
Abudullahi, one of the traders, said:
“Today, Tuesday, February 3, I bought the dollar at N1,450 and sold it at N1,470. The euro and British pound also saw minor adjustments, with the euro trading at a buying rate of N1,705 and a selling rate of N1,745.
“For the British pound sterling, the selling rate is N1,985, while the buying rate is N2,015.”
The new rate quote is a massive fall when compared to the rates on January 5, 2026.
At the start of the year, Legit.ng understands that the dollar exchanged for N1,485 to buy and N1,500 to sell, while the euro traded at N1,710 to buy and N1,735 to sell, as well as the British pound at N1,985 to buy and N2,015 to sell.
Naira’s performance in the official market
It is a different story for the naira in the official market as stronger demand for forex affected currency movement.
Read also
Naira records 7 straight days of appreciation against US dollar, secures new exchange rate
The naira weakened against the US dollar in the Nigerian Foreign Exchange Market (NAFEM) on Monday, February 2, falling by N3.81 or 0.27% to N1,390.36/$1 from N1,386.55/$1 recorded last Friday, BusinessDay reports.
Photo: Bloomberg
Source: Getty Images
But the local currency remained within the expected trading range.
As of February 2, 2026, the naira exchanged at the following rates:
- CFA: N2.52
- Yuan/Renminbi: N200.20
- Danish Krone: N220.14
- Euro: N1,644.52
- Yen: N8.96
- Riyal: N370.73
- South African Rand: N86.61
- SDR: N1,921.34
- Swiss Franc: N1,785.49
- Pounds Sterling: N1,899.51
- US Dollar: N1,390.36
Expert predicts new naira/dollar rate in 2026
Earlier, Legit.ng reported that the naira is projected to trade between N1,350 and N1,450 per US dollar in 2026.
Yemi Kale, Chief Economist at the Africa Export-Import Bank (Afreximbank), projected while delivering the keynote address at the FirstBank Nigeria Economic Outlook 2026.
Kale outlined scenario-based forecasts for the USD/NGN exchange rate, taking into account oil prices, foreign-exchange (FX) inflows, inflation trends, and policy consistency.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng