Naira Holds Firm at ₦1,475/$ as CBN Tightens FX Controls Amid Late-2025 Market Stability
The Nigerian naira maintained relative stability at ₦1,475 per dollar last week, reflecting the Central Bank of Nigeria’s (CBN) intensified efforts to steady the foreign exchange (FX) market. Despite ongoing demand pressures, the currency’s performance signals cautious optimism as the CBN sustains interventions to close the gap between the official and parallel markets. According to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira depreciated slightly by 1.37% week-on-week, while trading at about ₦1,484/$ in the parallel market.
Market analysts attribute the naira’s recent resilience to improved oil revenues, non-oil foreign inflows, and Nigeria’s stronger trade surplus, which have collectively strengthened the country’s external reserves. The CBN has reportedly increased reserves to over $43 billion, providing more room for regular forex interventions. In addition, the bank has stepped up crackdowns on illegal Bureau de Change (BDC) operators and promoted a unified exchange rate policy, both of which have helped moderate volatility in recent months.
Still, FX demand remains high among importers, manufacturers, and retail buyers, creating persistent pressure on dollar supply. The difference between official and street market rates continues to worry investors, though recent monetary policy actions—including the September interest rate cut and continued market reforms—have eased some volatility. Analysts say that sustaining these reforms and boosting dollar liquidity through export diversification are key to long-term exchange rate stability.
Globally, the U.S. Dollar Index (DXY) traded around 98.4 in early London sessions on Monday, weakening as investor confidence dipped amid the ongoing U.S. government shutdown, now in its 19th day. Market sentiment suggests the Federal Reserve could introduce additional rate cuts before year-end to cushion the U.S. economy. The expectation of lower U.S. interest rates often reduces the dollar’s global strength, a trend that could offer mild relief to emerging-market currencies like the naira.
Meanwhile, geopolitical developments continue to shape global currency markets. Hopes for a U.S.–China trade breakthrough have slightly improved risk appetite after U.S. President Donald Trump expressed optimism about a potential soybean deal with Beijing. Analysts believe that easing trade tensions and stable oil prices could support emerging-market currencies in the coming weeks. For Nigeria, however, sustaining naira stability will depend on maintaining FX inflows, managing inflation, and reinforcing investor confidence through consistent policy execution.
source: Nairametrics