Naira Records Highest Appreciation in One Month as CBN Pumps More FX

• The naira has recorded its highest gain in 30 days in the Nigerian Foreign Exchange Market (NFEM)
• At the close of trading on Friday, May 23, 2025, the naira appreciated to N1,579 per dollar, from N1,583.92
• The Central Bank of Nigeria attributed the naira’s gain to its reforms and policies, saying the local currency is now globally competitive

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

The reforms embarked on by the Central Bank of Nigeria (CBN) seem to be paying off as the local currency is beating global shocks to maintain stability.

The naira continued its rally against the US dollar on the Nigerian Foreign Exchange Market (NFEM) on Friday, May 23, 2025, recording the highest gain in 30 days.

The naira gains as the CBN gives reasons

Data from the CBN shows that at the close of trading on Friday, May 23, 2025, the Nigerian currency rose to N1,579 per dollar, up from N1,583.92 it traded the previous day.

The naira has continued its upward swing in May, rising from N1,612 as of May 7, 2025, the lowest this month.

Olayemi Cardoso, the governor of CBN, has attributed the naira’s stability to reforms by the bank.

He said the naira’s stability stems from policies and reforms implemented by the CBN to improve liquidity and boost confidence in the FX market, he said.

Speaking at the Monetary Policy Committee (MPC) meeting of the bank, Cardoso said the current naira stability has enhanced the country’s economic outlook, stating that the naira is now globally competitive.

Experts praise the CBN

Experts have praised the CBN for its reforms that helped to keep the naira stable.

“The naira is rallying despite the drop in crude oil prices and slightly depleted reserves. It means that CBN must have got its act together to pull this off,” Jane Ogochukwu, senior banker and economist, told Legit.ng.

Ogochukwu disclosed that the wide disparity between the parallel and the official markets has almost disappeared, achieving the foreign currency reform aims of the Nigerian government.

Meanwhile, at the end of trading on Friday, May 23, 2025, currency dealers quoted the dollar at a high of N1,585 and a low of N1,575.10.

The naira against other currencies

• Euro: N1,789.9806
• Yen: N11.0760
• Riyal: N420.9486
• South African Rand: N87.96
• Swiss Franc; N1,918.42
• Pound sterling: N2,135.
• Yuan: N219.82
• CFA: N2.71

Experts predict Naira, Ghana and Uganda currencies' rates

Legit.ng earlier reported that African currencies, the Ghanaian Cedi and the Ugandan shillings, have been tipped for gains next week in the foreign exchange markets driven by inflows and supportive central bank actions.

While Nigeria's naira is expected to remain stable against the dollar. However, Kenyan and Zambian currencies are expected to depreciate next week.

Reuters reports that Ghana's cedi is expected to extend its recent gains against the dollar, supported by substantial hard-currency inflows from remittances and ongoing interventions by the central bank.

Source: Legit.ng