Naira Holds Steady at N1,602/$1 in Official Market Amid CBN Stabilization Efforts
The Nigerian naira maintained its stability at the official exchange window on Wednesday, closing at N1,602/$1—the same rate recorded on Tuesday. This signals the continuation of the Central Bank of Nigeria’s (CBN) efforts to stabilize the currency amid ongoing economic challenges and inflationary pressures.
Exchange Rate Trends
According to official data from the CBN website, the naira had closed at N1,596/$1 on Monday before settling at N1,602/$1 on both Tuesday and Wednesday.
Intra-day trading data revealed that the naira fluctuated between a high of N1,603.5/$1 and a low of N1,580/$1 on Wednesday. This compares to Tuesday’s trading range of N1,602.02/$1 (high) and N1,596.7/$1 (low), indicating minimal volatility.
The average exchange rate stood at N1,599.5/$1 on Wednesday, slightly lower than the N1,600.04/$1 recorded on Tuesday.
Naira Performance Against Other Currencies
Against major global currencies, the naira posted the following rates at the official market on Wednesday:
- British Pound Sterling: N2,129.66
- Euro: N1,814.31
- Swiss Franc: N1,938.44
Parallel Market Movement
Meanwhile, in the parallel (black) market, the naira traded at N1,608/$1 on Wednesday, slightly strengthening from N1,610/$1 recorded on Tuesday but down from N1,605/$1 on Monday.
The sustained divergence between the official and unofficial rates—currently at N6 per dollar—has raised concerns among analysts about persistent arbitrage opportunities and speculative trading, which continue to pressure the foreign exchange market.
Despite the CBN’s tightening policies and liquidity-boosting interventions, the widening spread between official and black market rates remains a critical issue. Analysts question whether ongoing FX reforms can fully unify the market and eliminate distortions.
Economic Reforms and Investor Confidence
Recently, Finance Minister Wale Edun and CBN Governor Olayemi Cardoso stated that President Bola Tinubu’s economic reforms have restored investor confidence and stabilized the FX market. They presented an optimistic outlook during the 2025 IMF and World Bank Spring Meetings in Washington, D.C.
CBN’s Open Market Operations
The apex bank recently raised N804.85 billion at its Open Market Operations (OMO) auction, reflecting strong investor demand for high-yield securities amid excess liquidity and inflation concerns. A previous auction saw a 102% oversubscription, with the 319-day bill being the most sought-after.
Adoption of PAPSS for Cross-Border Payments
In another development, the CBN directed banks to adopt the Pan-African Payment and Settlement System (PAPSS) to enhance intra-African trade and improve cross-border payment efficiency.
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