2 weeks Ago By Olalekan Adigun
The naira ended the trading week on a strong footing, appreciating to N1,589/$1 at the official Nigerian Foreign Exchange Market (NFEM) on Friday, April 25, 2025. This reflects a significant improvement from N1,605/$1 recorded on Thursday, extending a trend of relative stability in the official market. Earlier in the week, the naira exchanged at N1,603/$1 on Wednesday and N1,606/$1 on Tuesday, the first trading session following the Easter holidays.
Related Stories Naira weakens as exchange rate hits N1,605/$1 at official market Banks rake in N8.4 trillion from customer loans in 2024 amidst high interest rates Data published on the Central Bank of Nigeria (CBN) website on Friday showed an intra-day high of N1,605/$1 and a low of N1,580/$1, pointing to improved liquidity conditions in the market. The apex bank data also shows that the Simple Average Rate for the currency on Friday was at N 1,599.
42/$1. Meanwhile, in the parallel market, the naira showed a mixed performance. It traded at N1,600/$1 on Friday, slightly stronger than the N1,610/$1 recorded on Thursday.
The rate was stable at N1,600/$1 on Wednesday, following a mild recovery from N1,615/$1 on Tuesday, according to data obtained by Nairametrics from market sources. Market analysts suggest that the narrowing gap between the official and parallel market rates signals growing confidence in the CBN’s recent monetary interventions and improved FX market coordination. Some analysts also attribute the currency’s performance to recent comments by U.
S. President Donald Trump, who hinted at a possible swift resolution to the ongoing trade dispute with China. The improved outlook for the naira, especially at the official window, aligns with recent statements by the CBN Governor, Olayemi Cardoso, who has consistently stressed the need for foreign exchange stability.
Speaking at a strategic meeting held on the sidelines of the Spring Meetings of the International Monetary Fund (IMF) and World Bank in Washington, D.C., Governor Cardoso explained that these policies were designed to remove systemic bottlenecks that have historically hindered FX inflow into the Nigerian economy.
The meeting included top Nigerian government officials, led by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, along with international investors. Discussions focused on restoring investor confidence and repositioning Nigeria’s macroeconomic fundamentals for long-term growth. Recently, Nairametrics reported that the CBN, in an effort to stabilize the naira, the CBN sold an estimated $200 million at multiple official exchange windows.
Recall that the CBN revised its guidelines, permitting licensed BDCs to purchase foreign exchange directly from Authorized Dealers as part of efforts to curb market volatility and reduce the widening gap between the official and parallel markets. Also, to further enhance transparency and foster investor confidence, the CBN introduced the FX Code and the Electronic Foreign Exchange Matching Systems (EFEMS)..
