The naira appreciated to ₦1,494.03/$ at the official market, with the parallel market closing at ₦1,510.00/$.
This appreciation narrowed the exchange rate gap to ₦15.5/$, reflecting the Central Bank of Nigeria’s effective policy measures.
CardinalStone Research reported a 1.04% official market gain, while the parallel market strengthened by 1.66% simultaneously.
The CBN extended dollar sales to Bureau De Change operators until May 30, 2025, boosting market liquidity significantly.
CBN Policies Drive Exchange Rate Convergence
Aminu Gwadebe noted that interbank proceeds to BDCs reduced market panic and improved foreign exchange market liquidity.
“The CBN’s directive ensures liquidity injection, calming market panic and supporting naira appreciation across all trading platforms,” he stated.
The naira previously gained 0.05% at ₦1,509.53/$ officially and appreciated 0.65% to ₦1,535.00/$ at the parallel market.
MPC Holds Benchmark Rate, Signals OptimismThe Monetary Policy Committee retained the Monetary Policy Rate at 27.50%, maintaining market stability and investor confidence levels.
Other parameters held include the 50% cash reserve ratio for banks and a 30% liquidity ratio across markets.
CBN Governor Olayemi Cardoso highlighted foreign exchange market stability, boosting hopes for improved price dynamics and economic growth.
“The committee praised the narrowing exchange rate gap, reflecting effective macroeconomic policies and robust external sector improvements,” Cardoso added.
Investor Confidence on the Rise
Recent measures, such as the Electronic Foreign Exchange Matching System, boosted transparency, ethics, and credibility within the market.
Cardoso believes that major policy measures will attract foreign direct investments, portfolio inflows, and increased diaspora remittances soon.
“The monetary authorities expect improved stakeholder confidence, with market liquidity benefiting from recent policy implementations,” he further emphasized.
Outlook Remains Positive
Analysts predict sustained naira appreciation if the CBN’s liquidity injections and regulatory measures continue driving market confidence.
Market watchers remain optimistic, projecting foreign exchange stability and economic recovery supported by growing investor participation.
With narrowing exchange rate gaps, Nigeria’s foreign exchange landscape could stabilize further, enhancing economic growth prospects significantly.
