Experts Predict New Naira Exchange Rates as CBN Sells $190 Million to Authorised Dealers

• Financial experts have predicted that the naira will continue to be stable, but have ruled out further strengthening
• They disclosed that the naira gained 1.1% last week at N1,585 per dollar as the Central Bank of Nigeria (CBN) sold $190.40 million to dealers
• Data from the Nigerian Foreign Exchange Market showed that the naira appreciated to N1,580.44 per dollar on Friday, May 23, 2025, from N1,584.95 

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Economists and currency experts have predicted that the naira is expected to maintain stability as the Central Bank of Nigeria (CBN) rolls out policies to ensure continuous appreciation.

However, they ruled out a substantial strengthening of the local currency due to global economic shocks.

Experts predict a stable currency, and the naira gains

A weekly report by Cordros, a consultancy firm, said that the naira appreciated by 1.1% at N1,585 per dollar last week due to CBN’s FX sales of $190.40 million to authorised dealers.

According to data from the apex bank, the naira ended the week on a positive note, appreciating to N1,580.44 per dollar on Friday, May 23, 2025, from N1,584.95 on Thursday, May 22, 2025, marking the first drop after MPC decisions.

Cordros said that the naira may remain stable in the short term, as global pressure remains contained amid the easing of trade tensions.

“However, any substantial appreciation appears unlikely, with FX liquidity still constrained by subdued foreign portfolio inflows amid persistent global uncertainty,” the company said.

Nigeria’s FX reserves rise

Reports say that FX reserves increased for the fourth week running by $166.63 million weekly to $38.54 billion as of May 21, 2025, as the apex bank continues to provide buffers to maintain the naira’s stability at the FX market.

The naira’s stability has boosted investors’ confidence after it lost over 40% of its value last year, due to devaluations, which analysts say made it more competitive.

BusinessDay reports that CBN boss, Olayemi Cardoso, disclosed at the last MPC meeting that Nigeria now has a competitive currency, which will boost opportunities for export growth.

He disclosed that the financial sector regulator would increase reforms to ensure that the naira remains stable despite global tensions while maintaining price stability.

The naira gains in the black market

However, in the parallel segment of the foreign exchange market, the local currency showed signs of stability, starting the week at N1,610 per dollar. 

The move reflects a modest gain of N5 relative to N1,615 quoted on Friday, May 23, 2025.

Afrinvest’s weekly market update showed that Nigeria’s FX reserves rose by 0.6% weekly, closing at $38.6 billion as of May 22, 2025, reflecting improved macroeconomic fundamentals.

CBN reports rise in Net FX reserves

The company said that the naira’s movement has consistently improved, from N134.50 per dollar in May 2024 to N1,580.44 per dollar as of Friday, May 23, 2025, weakening by 91.5% in the last 21. years.

Legit.ng reported that the CBN disclosed that the country’s net external reserve (NFER) stood at $23.11 billion by the end of 2024.

The development marks the highest rise in three years, representing a dramatic improvement from previous years.

Janet Ogochukwu, a senior banker and an economist, disclosed that the naira may not experience much depreciation.

She said that the naira will continue to rise as the CBN continues interventions in the FX market.

"We expect a robust rebound of the naira in the coming days as CBN sells more FX to dealers in the market.." she said.

Dealers crash the dollar

Legit.ng earlier reported that the naira continued to surge USD, marking over a week of continuous gains.

Eletad Central Bank of Nigeria (CBN) governor Olayemi Cardoso said the surge is due to the bank's massive reforms.

At the close of trading on Wednesday, May 21, 2025, the local currency appreciated against the dollar for the eighth consecutive day, at N1,583, up from N1,585, representing N5 appreciation.

Source: Legit.ng