The Nigerian naira appreciated to ₦1,600 per U.S. dollar in the parallel market as of Monday, May 6, 2025, marking a ₦10 gain from ₦1,610 at the close of last weekend. This comes amid subtle improvements in foreign exchange availability and ongoing monetary interventions by the Central Bank of Nigeria (CBN).
At the official Nigerian Foreign Exchange Market (NFEM), the naira also saw a slight appreciation, moving from ₦1,606 to ₦1,605 per dollar. Although the gain was marginal, it reflects continued efforts by the CBN to stabilize the currency and close the gap between official and unofficial rates.
The central bank’s latest data confirmed the minor uptick, with analysts suggesting that the gain may be tied to modest increases in dollar liquidity and improved market sentiment. This subtle movement supports the bank’s broader strategy of tightening supply in unofficial channels to drive more demand toward the formal market.
However, despite the appreciation, the margin between the parallel market and the NFEM rate widened slightly from ₦4 to ₦5 per dollar. This suggests that while the naira is showing signs of strength, arbitrage opportunities still exist between the two segments of the market.
Going forward, currency watchers and economists will be paying close attention to the CBN’s next moves, particularly in managing external reserves and FX supply. While the recent gains are a step in the right direction, sustaining this trajectory will depend on broader economic factors, including oil revenue inflows, inflation trends, and foreign investment levels.