Bismarck Rewane: Naira Recovery Not Sustainable, Don’t Get Carried Away

In recent months, the Nigerian naira has shown signs of appreciation, trading at approximately ₦1,502.50 per dollar in the official market and around ₦1,510 in the parallel market. This strengthening, amounting to a 9 percent gain in 2025, has been largely attributed to reforms implemented by the Central Bank of Nigeria (CBN) aimed at enhancing market efficiency and transparency. However, Bismarck Rewane, Managing Director of Financial Derivatives Company, cautions that this rally may be short-lived.

Speaking on Channels Television, Rewane emphasized that the naira’s quick appreciation should be approached with caution. He highlighted that Nigeria’s foreign reserves have declined by over $3 billion year-to-date, now standing at approximately $40 billion. Additionally, the country has borrowed $4 billion through bond issues, with nearly $8 billion spent to support the naira at its current levels. Rewane warns that these measures may not be sustainable in the long term, and policymakers should not become complacent

While the naira’s recent performance offers a glimmer of hope, Rewane advises that the stability is temporary and likely to self-correct. He also noted positive economic indicators, such as easing inflationary pressures and positive GDP growth, with petrol and diesel prices cooling and the Purchasing Managers’ Index (PMI) expanding. Despite these optimistic signs, Rewane urges caution, suggesting that without addressing underlying economic challenges, the naira’s recovery may not endure.

In summary, while recent CBN reforms have contributed to the naira’s appreciation, experts like Bismarck Rewane advise that this recovery may be temporary. Sustainable stability will require comprehensive economic strategies beyond short-term financial interventions.