The Nigerian naira remained steady against the euro despite the European currency’s aggressive surge against the U.S. dollar in international markets.
The euro/naira exchange rate rose to N1,845 on the unofficial market on Monday.
Market activity indicated that the naira lost its N1,800/€ support level, causing the EUR/NGN exchange rate to continue rising.
The black market remains a crucial barometer of the country’s forex availability.
The Central Bank of Nigeria enforces tight restrictions on the official open market and controls access to foreign exchange, limiting funds for certain imports and Personal Travel Allowances (PTAs).
The euro (EUR/USD) rose significantly before encountering resistance, surging by 1% past the anticipated 1.15 mark—its strongest level since 2022—amid safe-haven buying driven by supranational trade tensions and a weakening dollar.
The U.S. Dollar Index (DXY), which measures the dollar’s strength against six major currencies, dropped to 98.2—its lowest since March 2022. Although the index had risen over the past three years following the Trump administration’s trade escalations with globally reserved currencies, recent developments have reversed that trend.
Last week, U.S. President Donald Trump ordered an investigation into the possibility of imposing new tariffs on all U.S. imports of critical minerals. Trade tensions between the U.S. and its allies, particularly China, have significantly increased. As a result, investors found the euro more appealing, contributing to the dollar’s decline to a three-year low.
U.S. Fed Chief Job Outlook Threatens Dollar’s Future
White House economic adviser Kevin Hassett stated that the Trump administration is investigating the legal basis for dismissing Federal Reserve Chair Jerome Powell. Such a move could have severe consequences for global financial markets.
- Throughout the Asian and early European trading sessions, the EUR/USD continued to climb. While today’s official macroeconomic calendar is relatively light, traders should closely monitor developments around international trade tariffs.
- Additional retaliation from Chinese officials could trigger a substantial rally in the EUR/USD pair. Resistance is expected around 1.153, with support near 1.14.
- Only with a competitive naira can Nigeria’s economy transition into a more diversified and capital-rich one.
U.S. Senator Elizabeth Warren warned of a potential financial disaster if President Trump succeeds in removing Federal Reserve Chair Jerome Powell, stating that such an action would erode investor confidence in U.S. capital markets.
Speaking to CNBC, Warren argued that the President “legally does not have the means to remove Powell” and that attempting to do so would violate legislative boundaries and constitutional norms. She emphasized,
“If a President of the United States can fire the Fed Chair, markets will fall into recession and collapse beyond recovery.”
Warren added that the strength of the stock market and the economy depends on the independence of monetary policy.
“This doesn’t distinguish us from any other third-world dictatorship. If political whims dictate monetary policy, we’re removing the very structure that gives our economy credibility.”
President Trump has repeatedly criticized Powell, claiming that interest rate policies are being influenced by proxy, and has called for his removal multiple times.
