CBN Releases New Exchange Rate as Naira Rebounds Against Dollar in Official Window

• After several days of depreciation, the naira rebounded, trading high against the dollar, euro and other currencies
• At the end of closing on Thursday, May 8, 2025, the naira exchanged for N1,608.10 per dollar, from N1,612 the previous day
• Experts attributed the naira’s gain to CBN’s interventions and reforms, which kept it from hitting rock bottom

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The naira has rebounded against the US dollar and other currencies after several days of depreciation in the FX markets.

The Nigerian currency has faced renewed volatility amid dwindling crude oil prices.

The naira rebounds amid volatility

However, following multiple interventions and forex sales by the Central Bank of Nigeria (CBN), the naira has remained relatively stable.

The naira showed renewed strength on Thursday, May 8, 2025, when it rebounded in the Nigerian Foreign Exchange Market (NFEM).

The local currency closed trading at N1,608.10 per dollar, up from N1,612 the previous day.

Currency dealers set the dollar rates at a high of N1,614 and a low of N1,608 per dollar.

Expert praises CBN's actions

Coming when crude oil prices are at a multi-year low, experts say CBN’s actions and reforms have helped keep the naira afloat against major currencies.

Janet Ogochukwu, senior banker and economist, commended the apex bank for its unrelenting efforts in keeping the naira from veering off course.

“The circulars, reforms and steps of the CBN have helped to keep the naira relatively steady. However, there will be increased demand for the dollar in the coming days as more people seek to travel for summer holidays.

"CBN will be required to buckle up and sell more FX to cushion the effect of the anticipated surge in demand,” she said.

A previous report by Legit.ng disclosed that CBN recorded a N13.9 trillion loss, about $9 billion, as it tries to settle overdue contracts and prune FX liabilities on its balance sheet and save the naira in 2024.

The loss more than doubled from N6.3 trillion in 2023 as the apex bank redeemed legacy transactions to reduce outstanding forex liabilities, lowering FX exposure and boosting reserves.

CBN records a loss trying to defend the naira

In 2023, the bank published its finances to boost investor confidence and enhance transparency in its affairs and foreign exchange management.

According to reports, the development came as the bank aims to remove capital controls, enable the naira to trade freely and lure inflows to end dollar scarcity.

The bank’s financial reports reportedly raised concerns about the actual size of Nigeria’s external reserves and the apex bank’s capacity to support the naira, as it disclosed large deals with JP Morgan and Goldman Sachs involving foreign currency contracts for cash to support the government’s revenue.

CBN settles debts to foreign banks

Bloomberg reported that the CBN said in April that it had settled deals, including swaps and forward contracts, to bring Nigeria’s net foreign currency to $23 billion as of December last year.

As of April 30, 2025, Nigeria’s gross external reserves increased to $37.9 billion, the highest in three weeks.

The Nigerian currency, the naira, has lost about 71% of its value against the dollar since Bola Tinubu became president and embarked on foreign currency reforms.

Naira hits its lowest level in three weeks

Legit.ng earlier reported that the Nigerian currency, the naira, hit a three-week low amid slowed foreign exchange inflow into the Nigerian Foreign Exchange Market (NFEM).

The fall was triggered by global trade dynamics, including dwindling crude oil reserves and other factors.

Data from the Central Bank of Nigeria (CBN) showed that at the end of trading on Wednesday, May 7, 2025, the naira fell to N1,612 to the dollar, down from N1,609 the previous day.

Proofreading by Nkem Ikeke, copy editor at Legit.ng.

Source: Legit.ng