Nigeria's currency, the naira, has recorded a significant appreciation against the US dollar, gaining N32.38 on a week-on-week basis at the official foreign exchange market.

According to data from the Central Bank of Nigeria (CBN), between Friday, May 30, and June 5, 2025, the naira strengthened to N1,553.12 per dollar from N1,585.50, representing a 2.04 percent increase in value during the period under review.

The positive trend was also observed in the parallel market, where the naira closed at N1,590 per dollar on Thursday, up from N1,625 recorded on May 30, 2025. This indicates a N35 appreciation against the dollar in the unofficial market during the same period.

CBN Governor Attributes Stability to Reforms

CBN Governor Olayemi Cardoso recently attributed the naira's relative stability to reforms implemented by the apex bank. He noted that the Nigerian currency has become a competitive payment system within the West African region.

However, Bismark Rewane, Managing Director of Financial Derivatives Company, speaking at the recent Lagos Business School breakfast club, stated that despite the gains, the naira remains 26.82 percent undervalued.

The currency's appreciation comes amid ongoing economic reforms and interventions by the Central Bank to stabilize the foreign exchange market and boost investor confidence in the Nigerian economy.

Market analysts suggest that if this positive trend continues, it could help ease inflationary pressures and potentially lead to reduced prices of imported goods in the coming weeks.

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