The naira appreciated to ₦1,494.03/$ at the official market on Thursday, according to data from FMDQ Securities Exchange Limited. Similarly, the currency strengthened in the parallel market, trading at ₦1,510.00/$, reducing the exchange rate gap to ₦15.5/$.
This improvement follows the Central Bank of Nigeria’s (CBN) forex policy interventions aimed at stabilizing the market. According to CardinalStone Research, the naira gained 1.04% at the official window and 1.66% in the parallel market.
CBN’s Intervention Boosts Naira’s Recovery
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 continued appreciation.
This trend was also observed in the previous trading session, where the FMDQ rate appreciated by 0.05% to ₦1,509.53/$, while the parallel market rate improved by 0.65% to ₦1,535.00/$.
CBN Holds Interest Rates as Forex Market Stabilizes
Meanwhile, the CBN’s Monetary Policy Committee (MPC) has maintained the benchmark interest rate at 27.50%, with other key parameters unchanged:
- Cash Reserve Ratio (CRR): 50% for deposit money banks
- CRR for Merchant Banks: 16%
- Liquidity Ratio: 30%
Market watchers anticipate further forex stability as the CBN’s interventions continue to take effect.