Experts reveal what will happen to the naira as CBN intervenes

• Financial experts person predicted that the naira volition proceed to beryllium stable, but person ruled retired further strengthening
• They disclosed that the naira gained 1.1% past week astatine N1,585 per dollar arsenic the Central Bank of Nigeria (CBN) sold $190.40 cardinal to dealers
• Data from the Nigerian Foreign Exchange Market showed that the naira appreciated to N1,580.44 per dollar connected Friday, May 23, 2025, from N1,584.95 

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

Economists and currency experts person predicted that the naira is expected to support stableness arsenic the Central Bank of Nigeria (CBN) rolls retired policies to guarantee continuous appreciation.

However, they ruled retired a important strengthening of the section currency owed to planetary economical shocks.

Experts foretell a caller FX complaint for the naira against the dollar. Credit: Novatis
Source: Getty Images

Experts foretell a unchangeable currency, and the naira gains

A play study by Cordros, a consultancy firm, said that the naira appreciated by 1.1% astatine N1,585 per dollar past week owed to CBN’s FX income of $190.40 cardinal to authorised dealers.

According to information from the apex bank, the naira ended the week connected a affirmative note, appreciating to N1,580.44 per dollar connected Friday, May 23, 2025, from N1,584.95 connected Thursday, May 22, 2025, marking the archetypal driblet aft MPC decisions.

Cordros said that the naira whitethorn stay unchangeable successful the abbreviated term, arsenic planetary unit remains contained amid the easing of commercialized tensions.

“However, immoderate important appreciation appears unlikely, with FX liquidity inactive constrained by subdued overseas portfolio inflows amid persistent planetary uncertainty,” the institution said.

Nigeria’s FX reserves rise

Reports accidental that FX reserves accrued for the 4th week moving by $166.63 cardinal play to $38.54 cardinal arsenic of May 21, 2025, arsenic the apex slope continues to supply buffers to support the naira’s stableness astatine the FX market.

The naira’s stableness has boosted investors’ assurance aft it mislaid implicit 40% of its worth past year, owed to devaluations, which analysts accidental made it much competitive.

BusinessDay reports that CBN boss, Olayemi Cardoso, disclosed astatine the past MPC gathering that Nigeria present has a competitory currency, which volition boost opportunities for export growth.

He disclosed that the fiscal assemblage regulator would summation reforms to guarantee that the naira remains unchangeable contempt planetary tensions portion maintaining terms stability.

The naira gains successful the achromatic market

However, successful the parallel conception of the overseas speech market, the section currency showed signs of stability, starting the week astatine N1,610 per dollar. 

The determination reflects a humble summation of N5 comparative to N1,615 quoted connected Friday, May 23, 2025.

Afrinvest’s play marketplace update showed that Nigeria’s FX reserves roseate by 0.6% weekly, closing astatine $38.6 cardinal arsenic of May 22, 2025, reflecting improved macroeconomic fundamentals.

CBN reports emergence successful Net FX reserves

The institution said that the naira’s question has consistently improved, from N134.50 per dollar successful May 2024 to N1,580.44 per dollar arsenic of Friday, May 23, 2025, weakening by 91.5% successful the past 21. years.

Legit.ng reported that the CBN disclosed that the country’s net outer reserve (NFER) stood astatine $23.11 cardinal by the extremity of 2024.

The improvement marks the highest emergence successful 3 years, representing a melodramatic betterment from erstwhile years.

Experts uncover wherefore the naira volition proceed to appreciate Credit: Picture Alliance/Contributor
Source: Getty Images

Janet Ogochukwu, a elder banker and an economist, disclosed that the naira whitethorn not acquisition overmuch depreciation.

She said that the naira volition proceed to emergence arsenic the CBN continues interventions successful the FX market.

"We expect a robust rebound of the naira successful the coming days arsenic CBN sells much FX to dealers successful the market.." she said.

Dealers clang the dollar

Legit.ng earlier reported that the naira continued to surge USD, marking implicit a week of continuous gains.

Eletad Central Bank of Nigeria (CBN) politician Olayemi Cardoso said the surge is owed to the bank's monolithic reforms.

At the adjacent of trading connected Wednesday, May 21, 2025, the section currency appreciated against the dollar for the eighth consecutive day, astatine N1,583, up from N1,585, representing N5 appreciation.

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Source: Legit.ng