The Nigerian naira maintained relative stability against the euro last week, with the latest Central Bank of Nigeria (CBN) data showing the currency settling at ₦1,576 per euro, compared with ₦1,573 recorded the previous week.
The euro-to-naira exchange rate has declined significantly from around ₦1,774 per euro in January 2026, reaching a multi-month low of approximately ₦1,555.
Since the beginning of July, the EUR/NGN exchange rate has remained within a narrow range of about ₦1,561 to ₦1,576.70 per euro, reflecting reduced volatility in the official foreign exchange market.
Analysts attribute the relative stability partly to CBN interventions and increased liquidity in the forex market.
The apex bank has introduced several structural, regulatory and monetary policy measures aimed at improving market liquidity, reducing volatility and strengthening the naira.
Among the changes, the upfront payment requirement for imports of physical goods was increased from 15 per cent to 30 per cent of Free on Board (FOB) value. The adjustment is expected to simplify import transactions and ease working-capital pressures for businesses.
The CBN also removed the requirement for self-funded domiciliary account holders to complete Form A, allowing balances belonging to self-funded transactions to be domiciled directly at their destinations.
In addition, Personal Travel Allowance and Business Travel Allowance payments have been adjusted, with 25 per cent payable in physical foreign currency cash and 75 per cent electronically.
The measures, combined with expectations of monetary easing by the European Central Bank, have limited the euro's strength against emerging-market currencies offering relatively high domestic yields.
Euro Trades Below $1.16 Against Dollar
The euro began the new week on a relatively quiet note, trading below $1.16 against the US dollar during early European trading.
The movement followed weaker-than-expected US employment data, which reduced expectations of further interest-rate increases by the US Federal Reserve.
US nonfarm payrolls reportedly declined by 23,000 jobs in July, significantly below the market expectation of an 80,000-job increase. Annual wage growth also slowed from 3.4 per cent to 3.2 per cent, while the unemployment rate edged down from 4.2 per cent to 4.1 per cent.
The mixed US economic data have weakened the case for additional Federal Reserve rate hikes and placed some pressure on the dollar.
However, continuing geopolitical tensions in the Middle East, particularly uncertainty surrounding shipping through the Strait of Hormuz, have provided some support for safe-haven assets such as the US dollar.
Currency traders remain cautious as they await further developments concerning tensions in the region and their potential impact on global markets.
Investors are also looking ahead to upcoming US inflation data for further clues about the Federal Reserve's monetary policy direction.
Meanwhile, elevated oil prices and geopolitical risk could continue to influence the dollar, euro and broader foreign exchange markets in the short term.
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