The naira maintained stability across foreign exchange (FX) markets despite steady decline in external reserves.
Data from the Central Bank of Nigeria (CBN) showed that the naira appreciated to N1,502.50 per dollar week-on-week, gaining 0.56 percent or N8.50 compared to N1,511/$ closed the previous week at the Nigerian Foreign Exchange Market (NFEM).
Authorised currency dealers quoted the dollar at the highest rate of N1,509 on Friday, stronger than N1,520 last week Friday.
The market recorded the lowest rate of N1,491 per dollar on Friday as against N1,500 last week at NFEM.
At the parallel market, popularly called black market, the naira appreciated by N45, gaining 2.0 percent as the dollar quoted at N1,510 on Thursday and Friday from N1,555 quoted last week Friday.
Meanwhile, Nigeria’s external reserves declined to $38.73 billion as of February 20, 2025, losing $360 million or 0.9 percent week-on-week from $39.09 billion recorded on February 13, 2025.
Year-to-date, the foreign currency reserves have declined by $2.15 billion, losing 5.25 percent compared to $40.88 recorded at the beginning of the year.
Olayemi Cardoso, governor of the CBN, noted that the external reserves remained robust at US$39.4 billion as of February 14,
2025, translating to an import cover of 9.6 months for goods and services. In addition to this, he said the balance of payments has remained strong with a positive
current account balance of US$6.06 billion as at the end of the third quarter of 2024.
The naira has maintained stability in the forex market since the commencement of the Electronic Foreign Exchange Matching System (EFEMS) via the Bloomberg BMatch system.
The Monetary Policy Committee (MPC), which met in Abuja for the first time this year this week and highlighted the benefits of the improvements in the external sector to exchange rate stability, including the convergence of rates between the Nigeria Foreign Exchange Market (NFEM) and the Bureau de Change
(BDC), and urged the Bank not to relent in its effort to boost market liquidity.
In this regard, the Committee acknowledged recent measures introduced by the Central Bank, such as the Electronic Foreign Exchange Matching System (B-Match)
and the Nigeria Foreign Exchange Code, to foster transparency, ethics and credibility in the market.
“The MPC is, thus, of the view that following major policy measures undertaken by the monetary and fiscal authorities, the flow of
foreign direct and portfolio investments as well as diaspora remittances are expected to increase as investor and stakeholder confidence improves,”
Cardoso said, while briefing the media on the outcome of the MPC meeting.
The official and parallel-market exchange rates for the naira converged for the first time in nearly two years on Thursday, according to data tracked by BusinessDay.
The naira was quoted at N1,510 at the parallel market on Thursday, at par with the official closing rate of N1,510/$ on Wednesday. The last time both rates were at par was in June 2023.
The exchange rate crashed in the black market after the Central Bank of Nigeria extended its dollar sales to Bureau De Change Operators (BDCs) till May 30, 2025. The apex bank also retained its benchmark interest rate at 27.5 percent on Thursday.
The current rate in the black market brings the naira’s year to date gain to N155/$ or 10.3 percent, compared to N1,665 quoted at the beginning of the year, according to data from street traders and online platforms that collate foreign exchange (FX) data.
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