New Exchange Rate as Naira Extends Gains, Dollar Crashes to Five-Month Low

The naira has appreciated again in the foreign exchange market against the dollar, gaining N13

Data from the foreign exchange market shows that the naira closed trading on Thursday, June 6, 2025, at N1,551, a five-month high

The naira’s week-long gain has culminated in N28 appreciation in the last two days against the US greenback 

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

The Nigerian currency has continued its surge against the US dollar in the foreign exchange market, extending its gains into the weekend and the holidays.

The naira’s week-long rally is a testament to the effectiveness of policies by the Central Bank of Nigeria (CBN), experts say, as they predict further gains.

The naira gains N28 in two days

Data from the CBN on Thursday, June 5, 2025, shows that the naira hit a five-month high against the dollar, closing at N1,551 per dollar. up from N1,564, representing a N13 naira gain.

The naira last traded this strongly against the dollar was on February 28, 2025, when it closed at N1,500 per dollar.

Information from the Nigerian Foreign Exchange Market (NFEM) shows that currency dealers quoted the dollar spot rate at a high of N1,560 and a low of N1,545.

Analysts predict further gains

Analysts are jubilant over the naira’s rebound, as they expect a further boost in foreign direct investment.

They disclose that the naira’s rally will continue as long as the apex bank continues to plug the leakages and tighten regulations in the FX markets.

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

Forex reserves rise by $460 million

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

“The naira will continue its resurgence if the CBN continues to sanitise the system,” Janet Ogochukwu, senior banker and economist, said.

According to Ogochukwu, the predictions of the African Development Bank (AfDB) that the naira will depreciate by six per cent in 2025 may not happen if the CBN puts things in place.

“This is not the first time international finance agencies have predicted doom for the naira. Is it not concerning that the likes of the UK’s The Economist did not release Nigeria’s forecast for 2025?

“This is to tell you that the naira is unpredictable in its surge against major currencies,” she said.

Meanwhile, data from the 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.

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

CBN releases new dollar rates to clear goods

Legit.ng earlier reported that the Central Bank of Nigeria (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