SAT MAY 17 2025-theGBJournal| The naira rose on Friday after latest round of inflation data showed a slight fall in food inflation, putting it on pace for stellar weekly gain.
By close of official trade on Friday, the naira rose 0.5% w/w to N1,603.00/US$, supported by improved market sentiment following a 90-day tariff reprieve stemming from US-China trade negotiations, and the CBN’s intervention of c. USD40.00 million during the week.
In the forwards market, naira rates rose across the 1-month (+0.3% to N1,636.05/US$), 3-month (+0.4% to N1,700.59/USD), 6-month (+0.3% to N1,793.67/US$) and 1-year (+0.8% to N1,972.22/US$) contracts.
Meanwhile, gross FX reserves increased for the third consecutive week, growing by US$174.34 million w/w to US$38.30 billion (14 May).
Although global pressures are easing following the moderation of trade tensions, persistent global uncertainty is likely to continue weighing on foreign investor sentiment and likely constraining capital inflows in the near term.
Nonetheless, relatively robust FX reserves should strengthen the Central Bank of Nigeria’s (CBN) capacity to manage excess naira volatility through sustained market interventions.
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