Naira Hits 2-Month High Of N1,565.46 Per Dollar As Market Stability Holds
THECONSCIENCE NG reports that the naira climbed to a two-month high of N1,565.46 per dollar at the official foreign exchange (FX) market on Wednesday, continuing a trend of relative stability observed in recent months.
The last time the currency traded at a comparable level was on April 4, 2024, when the exchange rate stood at N1,567.02, according to data from the Central Bank of Nigeria (CBN).
By the close of trading on Wednesday, the naira had appreciated by N13.82 against the dollar, marking a 0.9% gain from the previous day’s rate of N1,579.28 at the official FX window.
In the parallel market, also known as the black market, the naira saw modest gains as well. It strengthened by N5, closing at N1,605 per dollar, an improvement from the N1,610 recorded on both Monday and Tuesday.
CBN Governor Olayemi Cardoso attributed the naira’s strengthened performance to a series of deliberate and disciplined reform measures implemented by the apex bank. He highlighted the narrowing gap between the official and parallel market rates as one of the most significant developments in Nigeria’s FX landscape in recent years.
“Thanks to our sustained reforms and enhanced policy transparency, the naira has stabilised at a far more sustainable level relative to the U.S. dollar,” Cardoso said. “For the first time in years, the disparity between the official and parallel market rates has virtually disappeared, and speculative arbitrage opportunities have been drastically reduced.”
Cardoso further noted that these reforms have helped reduce distortions in the FX market and rebuild investor confidence, leading to increased autonomous FX inflows through official channels. This, he said, has helped diversify Nigeria’s FX sources beyond its traditional reliance on oil revenues.
He also pointed to an improvement in the country’s external reserves, which have risen to over $38 billion, providing nearly 10 months of import coverage. “This gives us a more resilient buffer to withstand external shocks such as oil price volatility or global market disruptions,” he added.
Meanwhile, analysts at FSDH Merchant Bank Limited called on the CBN to remain proactive in managing the FX environment. They emphasized that ongoing reforms are critical to strengthening investor trust and market liquidity.
However, the analysts cautioned that monetary policy alone is not enough to secure long-term economic stability. In their latest economic report, they stressed the need for broader structural reforms and fiscal discipline to combat inflation, promote macroeconomic balance, and ensure sustainable growth.
