By Atoyebi Nike
The Nigerian Naira has appreciated against the Euro, settling at ₦1,715/€ at the official market from ₦1,729/€ at the end of September. The parallel market mirrored this bullish trend.
The Euro’s weakness follows deepening political turmoil in France. Budget disputes, mass protests, and the abrupt resignation of Prime Minister Sébastien Lecornu on October 6 triggered market anxiety, causing French borrowing costs to spike and the CAC 40 to fall by over 1.3%.
France’s political crisis, rooted in the 2024 snap elections, has led to a divided parliament and persistent fiscal uncertainty. Over 195,000 people joined nationwide strikes in early October, further unsettling markets and driving investors toward safe-haven assets like the US dollar.
Nigeria’s currency has benefited from this shift, supported by Central Bank of Nigeria (CBN) reforms, improved dollar inflows, and rising foreign reserves, which now stand at $43 billion. CBN’s foreign exchange policies including rate integration and the FX Matching System have boosted transparency and reduced speculation, strengthening the Naira amid global volatility.
