SAT MAY 31 2025-theGBJournal| The naira closed flat w/w at N1,585.00/USD on Friday, as the Central Bank of Nigeria’s (CBN) sale of approximately US$170 million to the market provided support but was insufficient to drive further appreciation.
The parallel market stood at N1,615 against the U.S dollar amid expectations that the CBN will stop selling dollar to the bureau de change by end of May 2025.
The USD/NGN pair traded within a tight range of N1,584.50 to N1,590.70, with sufficient inflows and moderate corporate demand suggesting the naira is likely to stay this exchange rate band barring major shocks.
In the forwards market, the naira rates appreciated across the 1-month (+0.1% to N1,621.61/USD), 3-month (+0.1% to N1,681.37/US$1), 6-month (+0.0% to N1,767.48/USD) and 1-year (+0.1% to N1,936.39/US$1) contracts.
Meanwhile, gross FX reserves declined by US$48.89 million w/w to US$38.50 billion (29 May).
The naira is expected to remain relatively stable in the near term, supported by sustained interventions from the CBN and a gradual easing of global pressures. However, a significant appreciation appears unlikely, as foreign exchange liquidity remains tight due to weak foreign portfolio inflows and lingering global uncertainty.
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