The naira appreciated to ₦1,494.03/$ at the official market yesterday. Similarly, it gained value in the parallel market, trading at ₦1,510/$, narrowing the gap between the two markets to ₦15.5.
This steady appreciation follows policies introduced by the Central Bank of Nigeria (CBN) aimed at stabilizing the foreign exchange market. According to CardinalStone Research, the naira strengthened by 1.04% at the official window and 1.66% in the parallel market.
A key factor in the naira’s rise is the CBN’s decision to extend dollar sales to Bureau De Change (BDC) operators until May 30, 2025. The President of the Association of Bureau De Change Operators, Aminu Gwadebe, noted that this move has helped inject liquidity into the market and reduce panic.
Meanwhile, the Monetary Policy Committee (MPC) of the CBN held its benchmark interest rate at 27.50%, maintaining other key parameters such as the cash reserve ratio at 50% for deposit banks and 16% for merchant banks.
CBN Governor Olayemi Cardoso stated that the foreign exchange market remains stable, attributing this to recent monetary policies. He also highlighted the impact of new measures such as the Electronic Foreign Exchange Matching System (B-Match) and the Nigeria Foreign Exchange Code, which aim to improve transparency and investor confidence.
With these developments, the CBN expects increased foreign investment and diaspora remittances, further strengthening the naira and stabilizing the economy.