The naira skilled a big rebound this week throughout each the official and parallel overseas alternate (FX) markets.
Information from the Central Bank of Nigeria (CBN) exhibits that the forex closed on Friday at N1,488/$1, up from N1,490/$1 on Thursday.
The info additional exhibits that, on the official market, the naira opened the week at N1,495/$1 on Monday, appreciating barely to N1,485.05/$1 on Tuesday.
The forex, nevertheless, slipped again to N1,498/$1 on Wednesday earlier than recovering to N1,490/$1 on Thursday.
In comparison with final week Friday’s closing fee of N1,503.5/$1, the naira confirmed marginal enchancment, suggesting cautious optimism amongst merchants and market members.
Nairametrics experiences that through the week, the forex surged to a five-month excessive of N1,497.5/$ on the first buying and selling session of the week within the official market, supported by higher overseas alternate (FX) liquidity and fewer demand stress.
Parallel market tendencies
The beneficial properties weren’t remoted to the official window. The parallel market additionally witnessed appreciation of the Naira through the week.
It traded at N1,520/$1 on Friday, a notable enchancment from N1,530.5/$1 on Thursday. That is up from N1,537/$1 recorded on Wednesday.
This efficiency signifies a narrowing hole between the official and parallel charges.
International reserves hit $41.9 billion
Throughout the week, Nigeria’s overseas alternate reserves closed the week at $41.9 billion. This represents a rise from final week’s $41.6 billion.
That is based on figures revealed by the Central Bank of Nigeria (CBN) on its web site.
Basically, FX reserve actions are significantly essential for financial stability, forex power, import capability, debt administration, and general investor confidence.
Optimism greets Naira appreciation
A number of specialists have attributed the renewed rally of the naira to a number of elements, with many predicting additional appreciation.
In an unique chat with Nairametrics, Zeal Akaraiwe, CEO of Graeme Blaque Advisory, cited the structural reforms that laid the groundwork for the naira’s restoration.
“Now we have to know the influence of the market initiatives that began final 12 months to strengthen the basic basis of the FX market, which culminated with the launch of the BMatch system in addition to the FX Code,” Akaraiwe mentioned.
Professor Murtala Sagagi, a member of the Financial Coverage Committee (MPC) of the Central Bank of Nigeria, expressed optimism in regards to the naira’s future, predicting it might strengthen to round N1,400 towards the US greenback by the tip of 2025.
His prediction is supported by encouraging occasions, together with an increase in overseas funding, an enchancment within the stability of funds, and a day by day enhance in crude oil manufacturing. These observations had been made on the July assembly of the Financial Coverage Committee (MPC), and the CBN made the knowledge public on September 12.
“With the latest enhance in day by day crude oil manufacturing, new inflows of capital, and an improved stability of funds, it’s probably that the naira will proceed to understand, probably reaching the projected N1,400 per greenback earlier than the tip of the 12 months,” Sagagi said
Forward of 302nd MPC assembly subsequent week
Nairametrics reported that specialists have projected that the CBN will decrease the Financial Coverage Fee (MPR) by 25 – 50 foundation factors at its 302nd assembly scheduled for September 22–23, 2025, citing easing inflation, naira stability, and international financial tendencies as key drivers.
Headline inflation eased for the fifth consecutive month in August 2025, marking the steepest moderation since April.
The August 2025 fee of 20.12% displays a big slowdown in comparison with July’s 21.88%, pushed by softer meals and vitality costs.
This development, analysts say, means that earlier financial tightening, fiscal changes, and improved provide dynamics are taking impact.
The naira has traded inside a N1,440/$ – N1,600/$ band within the official market since February this 12 months, buoyed by improved overseas portfolio inflows, regular oil earnings, and focused CBN interventions.
What you must know
At its 301st Financial Coverage Committee (MPC) assembly held in July, CBN voted unanimously to take care of the MPR at 27.5%.
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, projected a future decline in rates of interest, citing easing inflation and improved capital allocation effectivity as key drivers.
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