The Nigerian naira depreciated additional in opposition to the US greenback on the official overseas alternate market, closing at N1,609/$1 on Tuesday, Might 6, 2025.
This represents a N4 decline from the day past’s closing fee of N1,605/$1, based mostly on figures revealed by the Central Bank of Nigeria (CBN).
The continued slide within the alternate fee displays sustained stress on the nation’s exterior reserves and a widening demand-supply hole within the overseas alternate market.
This depreciation is going on regardless of varied interventions by the CBN to stabilize the naira and enhance liquidity within the official market.
Within the parallel (black) market, the naira additionally noticed additional weakening.
It closed at N1,615/$1 on Tuesday, down from N1,605/$1 recorded on Monday. The narrowing hole between the official and unofficial market charges suggests elevated speculative exercise and protracted challenges in accessing foreign exchange by way of official channels.
Regardless of the slight depreciation, market analysts proceed to focus on the relative stability within the foreign exchange market, notably because the apex bank’s overseas alternate reforms started taking maintain.
The convergence of the official and parallel market charges has decreased the extent of arbitrage alternatives available in the market, a transfer applauded by buyers and credit standing companies.
Fitch applauds coverage unification
Nairametrics stories that Fitch Rankings upgraded Nigeria’s outlook to Steady from Adverse, highlighting renewed confidence within the Bola Tinubu administration’s dedication to far-reaching coverage reforms.
- The score company particularly cited the introduction of the digital FX matching platform, the implementation of a brand new overseas alternate code designed to enhance transparency and effectivity, and ongoing financial coverage tightening as essential steps in restoring confidence in Nigeria’s FX market.
- These reforms are seen as a part of broader macroeconomic stabilization efforts beneath the present administration, geared toward attracting overseas capital inflows, curbing inflationary pressures, and stabilizing the naira over the long run.
- Whereas short-term volatility stays, stakeholders say the coverage path exhibits promise. Analysts additionally level to enhancements in FX liquidity and rising investor confidence, with many now anticipating additional appreciation of the naira as structural reforms start to yield outcomes.
CBN Governor reiterates dedication to FX stability
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has reaffirmed the apex bank’s dedication to fostering long-term financial stability, advancing monetary inclusion, and making certain coverage transparency as Nigeria intensifies its reform agenda.
He famous that the growing worldwide curiosity in Nigeria is each encouraging and a mirrored image of the nation’s rising momentum amid ongoing reforms.
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