T he Naira continued its upward momentum, closing at ₦1,494.03/$ at the official market on Thursday, marking a 1.04% appreciation from the previous day, according to FMDQ Securities Exchange data. The parallel market followed suit, climbing 1.66% to ₦1,510/$, narrowing the gap between the two rates to just ₦15.5/$—one of the slimmest differentials in recent months.
The Central Bank of Nigeria’s (CBN) aggressive forex interventions—notably, its decision to supply Bureau De Change (BDC) operators with dollars until May 30—is widely credited for the rally.
CBN’s Strategy Paying Off?
The Monetary Policy Committee (MPC) on Wednesday held key rates steady, maintaining:
✔ Monetary Policy Rate (MPR): 27.5%
✔ Cash Reserve Ratio (CRR): 50% for banks, 16% for merchant banks
✔ Liquidity Ratio: 30%
CBN Governor Olayemi Cardoso, post-MPC, highlighted the convergence of forex rates, attributing it to the Electronic Matching System and FX Code introduced for transparency.
What’s Next? A Sustainable Rally or a Temporary Fix?
While the Naira’s best official rate since January’s ₦1,475/$ offers optimism, analysts remain cautious. Comercio Partners warns of a potential slide to ₦1,700/$ if Nigeria's structural issues—import dependence, volatile oil revenue, and foreign investment hesitancy—persist.
For now, the CBN’s forex liquidity drive is stabilizing rates, but whether this rally sticks or fades depends on economic fundamentals and global market forces.
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