CBN’s Exchange Rate Changes as Naira Appreciates by N5 Against Dollar in Official Window

• The naira has reversed its losses in the Nigerian Foreign Exchange Market (NFEM), gaining N5 against the dollar
• Data from NFEM on Monday, June 2, shows that the naira appreciated to N1,580 per dollar from N1,585.50
• The move follows a rise in Nigeria’s foreign reserves, which added $460 million in May 2025

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

The Nigerian currency, the naira, began June on a positive note against the US dollar and other currencies.

The local currency reversed losses it suffered towards the close of May 2025, following increased interventions by the Central Bank of Nigeria (CBN).

The naira shows strength against the USD

Analysis by Legit.ng shows that the naira closed last month positively, gaining N16 against the dollar as of Friday, May 30, 2025.

Data from the Nigerian Foreign Exchange Market (NFEM) shows that the naira appreciated by N5 against the US dollar, up from N1,585.50 to N1,580 on Monday, June 2, 2025.

Experts have called the naira’s appreciation impressive, attributing it to the interventions and reforms by the CBN.

CBN intervenes in the FX market

The apex bank sold about N50 million to authorised dealer banks towards the end of May to prop up the naira’s value and hedge it against global shocks such as falling oil prices and tariff war.

NFEM data shows that at the end of trading on Monday, June 2, 2025, currency dealers quoted the naira’s spot rate at a high of N1,584 and a low of N1,579 per dollar.

Also, Nigeria’s external reserves improved modestly in May.

CBN figures show that the reserves added $460 million or 1.2% from $38 billion at the beginning of May to $38.46 billion as of May 29, 2025.

Experts expect more naira appreciation

The movement shows improved foreign exchange inflows, which allows the apex bank more buffer to sustain its FX interventions to strengthen the naira.

BusinessDay reports that analysts at Afrinvest Securities Limited estimated that the naira could maintain its current positive movement in June.

They anticipated that the naira would maintain similar performance across all forex markets.

The development comes as the African Development Bank (AfDB) said the second half of the year will be challenging for the Nigerian currency, the Ghanaian cedi and 19 other African currencies.

CBN raises hopes as AfDB predicts naira’s crash

This is according to a projection by the African Development Bank (AfDB), which predicted that the naira will fall by at least six per cent between 2025 and 2026.

The bank’s prediction comes after Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), disclosed that the naira is now globally competitive and that the volatility in the foreign exchange market has reduced significantly.

Cardoso said the volatility declined by about 0.5%, citing improved monetary and fiscal reforms.

However, despite Cardoso’s optimism, the AfDB’s reports projected currency depreciation for 21 African countries in 2025, including Nigeria, Egypt, Ethiopia, Ghana, Libya, Rwanda, Zambia, and Zimbabwe, where currency depreciations are expected to occur at six per cent.

CBN releases new dollar rates to clear goods

Legit.ng previously reported that CBN has increased the Customs foreign exchange rates for cargo clearance at Nigeria’s sea and airports.

The new rate comes amid the naira’s depreciation in the Nigerian foreign exchange market.

Data from the Customs trade portal shows that the apex bank increased the rate to N1,590.247 per dollar, up from N1,579.241.

Source: Legit.ng