The Nigerian naira maintained stability at the official exchange window on Wednesday, closing at N1,602/$1, the same rate recorded on Tuesday.
This signals a continuation of the Central Bank of Nigeria’s (CBN) recent efforts to stabilize the currency amid ongoing economic headwinds and inflationary pressures.
According to official data from the CBN website, the currency 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 intra-day high and low of N1,602.02/$1 and N1,596.7/$1, respectively, reflecting minimal volatility and a narrow trading band.
The average exchange rate stood at N1,599.5/$1 on Wednesday, slightly lower than the N1,600.04/$1 recorded on Tuesday, according to data available on the CBN’s official website.
Against other major 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
Movement in the parallel market
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.
- This sustained divergence between the official and unofficial rates — currently at N6 per dollar — has sparked renewed concerns among analysts and market participants about the persistence of arbitrage opportunities and speculative trading, which continue to exert pressure on the foreign exchange market.
- Nairametrics reports that despite the CBN’s tightening policies and interventions to increase liquidity and attract foreign inflows, the widening spread between the official and black market rates remains a critical issue.
- Analysts say the situation also raises questions about the effectiveness of the ongoing FX reforms in fully unifying the market and eliminating distortions.
More insights
- Speaking at a joint media briefing on the last day of the 2025 International Monetary Fund (IMF) and World Bank Spring Meetings in Washington, D.C., the finance minister and the CBN governor presented a bullish outlook for the country’s economy.
- Also, the apex bank raised a total of N804.85 billion at its Open Market Operations (OMO) auction held recently, as investors continue to show a strong appetite for high-yield securities amid persistent excess liquidity in the financial system and elevated inflation expectations.
- In an earlier auction round, the CBN offered N500 billion across two maturities and ended up raising N1.008 trillion following a 102% oversubscription.
- The previous auction’s longer tenor—the 319-day bill—was the most sought-after, and its momentum appears to have carried over into the current auction.
Nairametrics recently reported that CBN directed all banks operating in the country to adopt the Pan-African Payment and Settlement System (PAPSS) and commence originating transactions under the new framework, as part of efforts to deepen intra-African trade and improve cross-border payment efficiency.
