The naira began the week on a weaker footing, depreciating to N1,583/$1 on Monday at the official market.
This marks a decline from N1,579/$1 recorded on Friday, according to data from the Central Bank of Nigeria (CBN) website.
This comes after the naira posted an impressive appreciation streak in the official market last week.
CBN data also shows that intra-day trading on Monday saw the currency fluctuate between N1,578/$1 (lowest) and N1,583/$1 (highest), with a simple average rate of N1,579.65/$1.
Against other major currencies, the naira showed mixed performance. It weakened against the British pound, closing at N2,141.32/£1 on Monday, down from N2,136.75/£1 on Friday. Conversely, it gained against the euro, appreciating to N1,796.79/€1 from Friday’s N1,791.95/€1.
Naira holds firm in parallel market
In the parallel market, the naira showed slight strength, appreciating to N1,618/$1 on Monday, compared to N1,620/$1 on Friday. The currency had maintained relative stability at N1,620/$1 on both Thursday and Friday, following a steady rise from N1,625/$1 on Wednesday and N1,627/$1 on Monday, based on market data from Lagos.
However, the naira lost ground against other major currencies in the parallel market. It exchanged at N2,160/£1 on Monday, compared to N2,150/£1 on Friday. This rate was weaker than N2,135/£1 on Thursday, but stronger than N2,155/£1 on Wednesday and N2,145/£1 on Tuesday. The naira had opened the previous week at N2,142/£1.
FX reserves drop to $38.55bn as CBN intensifies BDC reforms
Nigeria’s foreign exchange reserves declined to $38,552,929,086.21 as of Friday, May 23, 2025, down slightly from $38,561,088,550.55, according to data from the Central Bank of Nigeria (CBN).
- This dip follows a brief rebound earlier in the year when the reserves rose by $364 million between April 30 and May 14, 2025 — marking the first notable recovery in 2025.
- The decline comes amid ongoing efforts by the CBN to sanitize the Bureau De Change (BDC) sub-sector. Recently, the Association of Bureau De Change Operators of Nigeria (ABCON) revealed that fewer than 5% of its licensed members have met the new capital requirements imposed by the apex bank.
- Widespread anxiety now grips the sector, as the majority of BDC operators face uncertainty ahead of the June 3, 2025 recapitalization deadline. Without an extension, many could lose their licenses.
Recall that in May 2024, the CBN raised the minimum capital requirements for BDCs from N35 million to N2 billion for a Tier 1 license and N500 million for a Tier 2 license, as part of broader financial sector reforms aimed at enhancing transparency and curbing forex malpractices.
