The exchange rate closed the week with a mixed performance, as the naira recorded a slight appreciation in the official market but weakened on the parallel (black) market.
According to data published on the Central Bank of Nigeria (CBN) website, the official rate ended at N1,545/$1 on Friday, slightly stronger than the N1,546/$1 recorded on Thursday.
The currency had hovered around N1,541/$1 earlier in the week on both Monday and Tuesday, before weakening midweek to N1,547.5/$1 on Wednesday, and then rebounding.
In contrast, the naira lost value on the parallel market, ending the week at N1,605/$1 on Friday, compared to N1,590/$1 on Monday.
The rate remained flat at N1,600/$1 for three consecutive days—Tuesday through Thursday—before weakening further on the final trading day, according to Nairametrics market surveillance in Lagos.
Foreign reserves fall to $37.713 billion
Foreign reserves declined further this week, according to the latest data from the CBN platform, settling at $37.713 billion on Thursday. This represents a fall from Wednesday’s $37.736 billion, which is a further fall from Tuesday’s $37.78 billion and Monday’s $37.823 billion.
Analysts say the currency’s fundamentals have significantly improved as the country’s headline inflation showed signs of peaking.
Nigeria’s headline inflation rate dropped to 22.97% in May 2025, marking the second consecutive month of decline, according to new data released by the National Bureau of Statistics (NBS).
The latest figure reflects a continued easing of price pressures, down from 23.71% recorded in April 2025.
Also, rally in oil prices also boosted the naira fundamentals during the week, given that Nigeria is reliant on Crude Oil for its FX income.
Oil prices spiked higher at the weekend after Israel executed a large preemptive strike on Iran, heightening concerns of a wider conflict in the Middle East and significant disruptions to oil supply routes.
What you should know
Against the backdrop of inflation easing to 22.97% in May 2025, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, on Monday met with the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso and some to officials of the apex bank in continuation of efforts to deepen the alignment of fiscal and monetary policies.
Discussions focused on sustaining and accelerating this momentum, essential to stabilising prices, boosting investor confidence, and empowering private sector-led growth, a statement from the Federal Ministry of Finance said.
Reserve my money.