The Naira saw a notable rise, strengthening to 1,494.03/$ in the official market on Thursday, according to data from the FMDQ Securities Exchange Limited.
This marks a continued upward movement for the currency, which also gained traction in the parallel market, climbing to 1,510.00/$ and narrowing the gap between the official and parallel exchange rates to 15.5/$.
The narrowing difference is largely attributed to the Central Bank of Nigeria’s (CBN) policy measures aimed at stabilizing the exchange rate. CardinalStone Research highlighted that the Naira appreciated by 1.04% on the official market, while the parallel market saw a 1.66% improvement.
This rise follows a series of positive trends in recent days. On the previous trading day, the Naira edged up by 0.05% to 1,509.53/$ on the official window, while the parallel market rate climbed by 0.65% to 1,535.00/$.
Experts have pointed to the CBN’s recent decision to extend dollar sales to Bureau De Change (BDC) operators until May 30, 2025, as a key factor in the Naira’s strengthening.
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Aminu Gwadebe, President of the Association of Bureau De Change Operators, expressed optimism about the currency’s future, noting that the CBN’s directive to inject liquidity into the market was helping ease tensions and reduce panic.
In a parallel development, the CBN’s Monetary Policy Committee (MPC) recently decided to keep the benchmark interest rate unchanged at 27.50%, maintaining key monetary parameters like the cash reserve ratio for deposit money banks at 50%, and the liquidity ratio at 30%.
Governor Olayemi Cardoso, speaking after the MPC meeting, underscored that the stability in the foreign exchange market played a crucial role in their decision, with the Naira’s appreciation and the convergence of rates between the official and parallel markets seen as positive indicators for the country’s economy.
Cardoso further emphasized the benefits of improved macroeconomic conditions, especially in the external sector, which are expected to support exchange rate stability in the medium term.
He also pointed to the CBN’s recent initiatives like the Electronic Foreign Exchange Matching System (B-Match) and the Nigeria Foreign Exchange Code, which are designed to enhance transparency and foster credibility in the market.
