The Nigerian naira rallied to N1,480 per dollar in official trading Friday, marking notable appreciation amid CBN interventions and rising external reserves.
The naira hit an intraday low of N1,471 Friday hinting at potential volatility if dollar demand spikes.
The naira has appreciated roughly 5% against the greenback over the past month.
In the parallel market, the naira traded at N1,495 per dollar on September 26, 2025, improving from N1,500 earlier in the week.
The narrowing gap between official and parallel rates now about N15, signals reduced arbitrage and greater confidence in CBN’s forex management.
The naira’s gains come as the US dollar weakens globally. The Dollar Index (DXY) tumbled 10.1% in September 2025, its steepest monthly drop in over three decades, closing around 97.45 Friday. The index has shed value amid expectations of further Federal Reserve rate cuts.
The CBN met expectations by cutting its benchmark rate 50 basis points to 27%, the first cut since 2020.
The move signals easing price pressures and is expected to stimulate credit growth while maintaining forex stability.
Nigeria’s headline inflation slowed for the fifth consecutive month to 20.12% in August, down from 21.88% in July, driven by moderated food prices.
Foreign reserves stood at $42.225 billion, serving as ample firepower for sustained interventions.
Challenges remain as sustained inflows depend on policy consistency and structural reforms.
