The naira recorded slight gains in Nigeria’s foreign exchange market on Thursday, closing at ₦1,548.59/$1, a marginal improvement from Wednesday’s ₦1,552.58/$1, according to FMDQ data. On the black market, the exchange rate remained stable at ₦1,660/$1 on Friday morning.
The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, credited recent forex reforms for fostering stability and enhancing the naira’s competitiveness. “We are beginning to see positive results, particularly with international remittances,” he said, adding that inflows through international money transfer operators (IMTOs) have been significant.
Cardoso acknowledged the challenges of 2024, including declining foreign reserves, low oil prices, and reduced production. However, he emphasised innovative reforms such as clearing $7 billion in forex commitments, discontinuing quasi-fiscal interventions, and unifying exchange rate windows. These measures, he said, have bolstered the naira’s stability and improved Nigeria’s global economic standing.
The Nigerian Economic Summit Group (NESG) projected a stronger naira exchange rate of ₦1,300/$1 by 2025, contingent on sustaining policy reforms. The group attributed the positive outlook to anticipated increases in foreign exchange inflows from oil exports, refined petroleum manufacturing, and agricultural productivity. NESG also forecasted a 5.5% GDP growth for 2025, driven by strategic reforms.
On the global stage, the U.S. Dollar Index dropped to a monthly low of 107.8, as expectations grew that the Federal Reserve would reduce interest rates twice this year. U.S. President Donald Trump also hinted at a potential trade agreement with China, alleviating inflation concerns and weakening the dollar further.
Credit: Nairametrics (Text Excluding Headline)
