Market News

The naira appreciated to N1,494.03/$ at the official market on Thursday, according to data from FMDQ Securities Exchange Limited. Similarly, it gained strength in the parallel market, trading at N1,510.00/$, reducing the exchange rate gap to N15.5/$.

The continued appreciation follows the Central Bank of Nigeria’s (CBN) policy interventions aimed at stabilizing the forex market. According to CardinalStone Research, the naira strengthened by 1.04% at the official window and 1.66% in the parallel market.

This upward trend was also recorded in the previous trading session, with the FMDQ rate appreciating by 0.05% to N1,509.53/$, while the parallel market rate rose by 0.65% to N1,535.00/$.

Analysts attribute the naira’s steady rebound to the CBN’s recent directive extending dollar sales to Bureau De Change (BDC) operators until May 30, 2025. The President of the Association of Bureau De Change Operators, Aminu Gwadebe, expressed optimism about the sustained recovery.

Meanwhile, the naira’s appreciation comes as the CBN’s Monetary Policy Committee (MPC) maintained the benchmark interest rate at 27.50%, alongside other key parameters such as the cash reserve ratio (CRR) at 50% for deposit money banks and 16% for merchant banks, with a liquidity ratio of 30%

Market watchers anticipate further forex stability as the CBN’s measures continue to take effect.

Writing by Julian Osamoto