How the naira ended May 2025 positively against the dollar

• The naira ended May 2025 positively, appreciating by 1.01% astatine N1,586.15 per dollar, from N1,602.18 astatine the opening of the month
• CBN information shows that the naira closed trading connected Friday, May 30, 2025, gaining N16.03 against the dollar
• The naira, however, closed weaker successful the parallel market, trading astatine N1,620 arsenic of Friday, May 30, 2025, from N1,605 astatine the opening of the month

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

The naira ended May 2025 beardown against the dollar successful the Nigerian Foreign Exchange Market (NFEM), appreciating by N16.03, coinciding with a emergence successful Nigeria's overseas speech reserves.

Data from the Central Bank of Nigeria (CBN) shows that the naira closed trading connected Friday, May 30, 2025, astatine N1,586.15 per dollar, marking a airy summation of 1.01% comparative to N1,602.18 recorded connected May 2, 2025, astatine NFEM.

The naira makes a stunning betterment against the dollar successful the FX market. Credit: Picture Alliance/Contributor
Source: Getty Images

The naira depreciates successful the achromatic market

In the parallel market, the naira depreciated by 0.9%, ending May weaker. On Friday, May 30, 2025, the dollar was sold astatine N1,620, marking an N15 driblet comparative to the N1,605 astatine the opening of the month.

The divergence successful the currency’s show betwixt the authoritative and parallel markets shows the renewed volatility successful the Nigerian FX market.

According to reports, Nigeria’s outer reserves improved modestly successful May.

CBN figures amusement that the reserves added $460 cardinal oregon 1.2% from $38 cardinal astatine the opening of May to $38.46 cardinal arsenic of May 29, 2025.

The question shows improved overseas speech inflows, which let the apex slope much buffer to prolong its FX interventions to fortify the naira.

Experts expect much naira appreciation

BusinessDay reports that analysts astatine Afrinvest Securities Limited estimated that the naira could support its existent affirmative question successful June.

They anticipated that the naira would support akin show crossed each forex markets.

The improvement comes arsenic the African Development Bank (AfDB) said the 2nd fractional of the twelvemonth volition beryllium challenging for the naira, the Ghanaian cedi and 19 different African currencies.

CBN raises hopes arsenic AfDB predicts naira’s crash

This is according to a projection by the African Development Bank (AfDB), which predicted that the naira volition autumn by astatine slightest six per cent betwixt 2025 and 2026.

The bank’s prediction comes aft Olayemi Cardoso, the politician of the Central Bank of Nigeria (CBN), disclosed that the naira is present globally competitory and that the volatility successful the overseas speech marketplace has reduced significantly.

Cardoso said the volatility declined by astir 0.5%, citing improved monetary and fiscal reforms.

However, contempt Cardoso’s optimism, the AfDB’s reports projected currency depreciation for 21 African countries successful 2025, including Nigeria, Egypt, Ethiopia, Ghana, Libya, Rwanda, Zambia, and Zimbabwe, wherever currency depreciations are expected to hap astatine six per cent.

AfDB names robust African currencies 

The slope attributed the depreciation inclination successful these countries to imaginable declines successful export earnings, which whitethorn interaction nationalist currencies.

Meanwhile, the AfDB study expects that currencies successful Kenya, Morocco, and CFA franc-using countries volition acquisition a robust currency rebound by much than 3 per cent against the US dollar, supported by stronger marketplace dynamics.

In 2023, AfDB said that 28 African countries experienced currency depreciation, but 17 of them reversed the losses oregon recorded a slower complaint of decline.

Naira defies predictions, ends May 2025 beardown against the dollar. Credit: Picture Alliance/Contributor
Source: Getty Images

AfDB recommends solutions

Nigeria is portion of the class that has yet to acquisition currency depreciation recovery.

The study shows the relation of planetary factors successful shaping currency trends portion pointing to home challenges specified arsenic unguarded FX frameworks, fiscal shortage monetisation, governmental instability, and debased productivity.

AfDB recommends that African countries boost home macroeconomic fundamentals, amended export capableness via value-added production, and instrumentality strategical policies to trim currency volatility.

CBN releases caller dollar rates to wide goods successful ports

Legit.ng previously reported that the CBN has increased the Customs overseas speech rates for cargo clearance astatine Nigeria’s oversea and airports.

The caller complaint comes amid the naira’s depreciation successful the Nigerian overseas speech market.

Data from the Customs commercialized portal shows that the apex slope accrued the complaint to N1,590.247 per dollar, up from N1,579.241.

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Source: Legit.ng