Naira Rises Against US Dollar as IMF Lauds FX Rate Stability
The naira rose to N1526 per US dollar in the foreign exchange (FX) market on Wednesday in the absence of significant demand pressures.
The local currency has continued to gain strength against the greenback in the currency market, supported by sufficient FX liquidity levels amidst growing foreign investors’ confidence.
Analysts also highlighted increasing forex market governance following the introduction of BMatch system in December last year, with FX intervention supported at the Nigeria foreign exchange market.
“Hoarding is becoming increasingly difficult and dangerous for speculators”, Broadstreet analysts said, citing that foreign currency offers to Bureau de Change (BDC) operators helped in stabilising the exchange rate.
According to today’s data update from the Central Bank of Nigeria (CBN), the exchange rate appreciated to N1526.15 on Wednesday from N1529.57 the previous day. Against a complex and uncertain external environment, medium-term growth is projected to hover around 3.5 percent, supported by domestic reform gains.
The International Monetary Fund has praised Nigeria’s reforms, a surge in gross and net international reserves in 2024, with a strong current account surplus and improved portfolio inflows. The IMF said in an official statement that the country’s reforms to the fx market and foreign exchange interventions have brought stability to the naira.
“Naira stabilization and improvements in food production brought inflation to 23.7 percent year-on-year in April 2025 from 31 percent annual average in 2024 in the backcasted rebased CPI index released by the Nigerian Bureau of Statistics.
“Inflation should decline further in the medium term with continued tight macroeconomic policies and a projected easing of retail fuel prices”, the Fund said. IMF directors said they welcomed steps taken by the authorities to build reserves and support market confidence and praised reforms to the foreign exchange market that supported price discovery and liquidity.
However, they called for implementation of a robust foreign exchange intervention framework focused on containing excess volatility, stressing that the exchange rate is an important shock absorber.
Elsewhere, oil futures climbed more than 2% on Wednesday after Iran halted cooperation with the U.N. nuclear watchdog and the U.S. reached a trade agreement with Vietnam. However, a surprise increase in U.S. crude inventories capped gains.
Brent crude rose $1.47, or 2.2%, to $68.58 per barrel, while U.S. West Texas Intermediate (WTI) advanced $1.46, or 2.2%, to $66.91. Meanwhile, gold prices strengthened as disappointing U.S. employment data raised expectations of earlier interest rate cuts by the Federal Reserve.
Investors also looked ahead to the non-farm payrolls report. Spot gold rose 0.3% to $3,348.60 an ounce, and U.S. gold futures closed at $3,359.70, also up 0.3%. Thursday’s U.S. jobs report will shape expectations for Fed rate cuts in the second half of the year.
#Naira Rises Against US Dollar as IMF Lauds FX Rate Stability#
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