Naira Closes Strong at N1,579/$1 as CBN Reforms Boost Investor Confidence

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The naira strengthens against the dollar amid CBN reforms, signaling growing investor confidence and relative FX market stability.

The naira ended the week stronger, closing at N1,579/$1 on Friday, May 23, gaining from N1,599.01/$1 the previous week, according to data from the Central Bank of Nigeria (CBN). Despite a brief dip to N1,586/$1 on Thursday, the local currency showed consistent appreciation throughout the week.

Weekly Performance
• Monday: N1,597/$1
• Tuesday: N1,588.5/$1
• Wednesday: N1,583/$1
• Thursday: N1,586/$1
• Friday: N1,579/$1 (range: N1,575.13 – N1,585/$1)

The parallel market remained stable, holding at N1,620/$1 on Thursday and Friday, following minor gains earlier in the week.

Mixed Moves vs Other Currencies
• British Pound: Fell to N2,136.75/£1 from N2,127.96/£1
• Euro: Gained to N1,791.95/€1 from N1,795.07/€1

Confidence Boost from FX Reforms
Business leaders like Femi Otedola and Tony Elumelu lauded CBN Governor Yemi Cardoso and President Bola Tinubu’s economic direction, citing rising investor confidence.

Reform highlights include
• Clearance of forex backlogs
• Introduction of high-yield fixed-income instruments
• Improved FX supply mechanisms

Interest Rate Steady
Despite momentum, the CBN held its interest rate at 27.5%, maintaining its cautious monetary stance for the second time this year.

The naira’s improved stability signals positive market response to ongoing reforms, though further gains depend on sustained policy implementation and capital inflow.