The Nigerian Naira surged to its strongest level in 2025, driven by CBN reforms and global dollar weakness.
The Nigerian Naira posted its biggest one-day gain of 2025 on Thursday, ahead of the Eid-ul-Mawlid holiday. The currency appreciated below the N1,550/$ mark in both official and parallel markets as the US dollar weakened globally.
According to CBN data, the naira strengthened to N1,514.87/$ from N1,521.46/$ the previous day. In the parallel market, it held firm below N1,540/$. Analysts credited the gain to CBN reforms, clearance of a $7 billion forex backlog, and higher investment inflows, which the World Bank described as “bold interventions.”
Standard Bank revised its 2025 forecast, now projecting the naira to close the year at N1,585.5/$ instead of N1,697.5/$. The bank expects a 3.1% depreciation, ending 2026 at N1,692.6/$.
Globally, the dollar hit a five-week low after weak US labor data and rising bets on a Federal Reserve rate cut at its September 16–17 meeting. Nonfarm payrolls added only 22,000 jobs in August, far below the 75,000 forecast.
The Bloomberg Dollar Spot Index fell 0.7%, extending losses to over 8% this year. The New Zealand dollar and Swiss franc outperformed, while the Canadian dollar lagged on back-to-back job losses, fueling rate cut expectations.
Traders now eye the OPEC+ meeting on September 7, where Saudi Arabia and Russia may extend production cuts, potentially shaping global markets.
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