The naira is expected to maintain its steady momentum as the Central Bank of Nigeria (CBN) continues to roll out measures to ensure stability, but a ‘substantial’ strengthening of the currency may be ‘unlikely’ given the global uncertainty.
According to a weekly report published on Friday by Cordros, a Lagos-based consultancy, the currency appreciated by 1.1 percent week/week to N1,585.00/USD, mostly supported by the CBN’s sale of $190.40 million to the market.
Data obtained from the CBN website showed that the naira ended the week on a strong note, appreciating to N1,579/$1 on Friday, May 23, 2025, from Thursday’s closing rate of N1,586/$1, which marked its first depreciation following the monetary policy hold decisions.
Read also: AFRICA-FX: Nigerian Naira to remain stable, Ghana and Uganda currencies could gain – Reuters
Except for Thursday, the naira recorded a consistent upward trend, quoted at N1,597/$1 on Monday, N1,588.5/$1 on Tuesday, and N1,583/$1 on Wednesday, indicating relative stability.
“The naira is likely to stay stable in the short term, as global pressure remains contained amid easing trade tensions,” the analyst said.
”However, any substantial appreciation appears unlikely, with FX liquidity still constrained by subdued foreign portfolio inflows amid persistent global uncertainty.”
Read also: Naira stabilises at N1,584 as dollar demand moderates
Meanwhile, gross FX reserves rose for the fourth consecutive week, growing by $166.63 million w/w to $38.54 billion as of 21st May as the CBN continues to ensure it has enough buffers to maintain stability at the exchange rate market.
The stability of the naira is however returning lost confidence after the currency shed more than 40 percent of its value last year, enduring steep devaluation that’s now made it more competitive.
CBN governor Olayemi Cardoso said at the press briefing after the 300th MPC meeting that the country now has a competitive currency that will help create opportunities for export growth.
Cardoso noted that the CBN will double down on reforms that’ll ensure that the currency continues to remain stable despite global tensions while maintaining price stability to anchor inflation expectations.
