Dealers Crash Dollar as CBN Releases New FX Rates Amid Naira’s Appreciation

• The Nigerian currency, the naira, has continued to rally against the dollar and some currencies
• On Wednesday, May 21, 2025, the naira strengthened further, closing at N1,583 per dollar from N1,583 the previous day
• The Central Bank of Nigeria (CBN) governor, Olayemi Cardoso, has attributed the naira’s gain to the bank’s reforms

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

On Wednesday, May 21, 2025, the naira continued to surge against the dollar, marking over a week of continuous appreciation.

Eletad Central Bank of Nigeria (CBN) governor Olayemi Cardoso said the surge is due to the bank's massive reforms.

The naira gains more 

At the close of trading on Wednesday, May 21, 2025, the naira rose against the dollar for the eighth consecutive day, at N1,583, up from N1,585, representing N5 appreciation.

Data from the Nigerian Foreign Exchange Market (NFEM) shows that the dollar traded at a high of N1,590 to a dollar and a low of N1,582.50.

However, the naira depreciated against the euro, trading at 1793.9433 to the euro, down from N1,793.

The naira against other currencies:

• EURO: N1,793.93
• Sterling: N2,124.89
• YEN: N11
• YUAN: N219.82
• CFA: N2.82

Experts commend CBN’s interventions

Economists have given thumbs-up to the apex for the naira’s stability, which has hovered around the N1,500 per dollar since the second week in May.

They say even when the nation’s foreign exchange reserves were down, the naira kept soaring in the FX market.

“There are reforms by the CBN that are driving the current stability, namely periodic interventions and circulars to provide transparency and confidence,” Janet Ogochukwu, a senior banker and an economist, said.

According to her, CBN has put in a lot to ensure that the local currency does not cross a certain threshold.

“We are seeing portfolio investors returning because there is some sort of stability and confidence in the naira,” she said.

Ogochukwu re-echoed the CBN governor’s sentiment, saying that the naira is now competitive.

Cardoso cited the recent round of global depreciation caused by the US policies and geopolitical tensions.

He said early reforms by the financial sector regulator helped Nigeria absorb the global economic shocks, stabilise the naira, and build investor confidence.

The naira, however, depreciated in the parallel segment of the foreign exchange market, down by N15 from N1,615 to N1,630 per dollar.

Currency dealers in the black market attributed the increased demand for the crash, saying those who could not go through official channels rushed to the parallel market for FX.

“We experienced a slight uptick in demand on Tuesday. Maybe that is the reason for the crash, as you mentioned,” Abbas Yishau, a currency dealer in the Ogba axis of Lagos, said.

CBN Introduces N80,000 charges for Nigerians

Legit.ng earlier reported that Diaspora Nigerians will now pay about $50, N80,000, to obtain their Non-Resident Bank Verification Number (NRBVN).

The Central Bank of Nigeria (CBN) launched the NRBVN platform recently in partnership with the Nigeria Inter-Bank Settlement System (NIBSS).

The move was designed to simplify the process for Nigerians abroad to access BVN registration without visiting the country. Despite the BVN being free in Nigeria, applicants from the Diaspora will pay a processing fee. The development has drawn varied reactions from diasporan Nigerians.

Source: Legit.ng