Naira’s volatility eases amid CBN interventions, appreciates in parallel market

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The Nigerian Naira experienced mixed fortunes in the foreign exchange market on Friday. In the parallel market, the Naira appreciated slightly to N1,550 per dollar, gaining N5 from the previous day’s rate of N1,555 per dollar. However, in the official market, the Naira depreciated by N1, falling to N1,532 per dollar from N1,531 per dollar.

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Despite the fluctuations, the gap between the official and parallel market rates narrowed to N18, compared to N24 the previous day. Analysts attribute the relative stability in the Naira’s value to the Central Bank of Nigeria’s (CBN) consistent interventions in the foreign exchange market.

Afrinvest West Africa Limited noted in its 2025 mid-year review that the CBN has successfully stabilized the Naira between N1,550.10/$ and N1,620/$. “The only major positive surprise to our projections has been the exchange rate. Contrary to our initial average projection of N1,804.45/$ for the year, the CBN has successfully stabilised the Naira between N1,550.10/$ and N1,620/$,” the report read.

The analysts credited the stability to “improved market transparency, tech-driven trading, strategic FX interventions, higher OMO yields, reduced FX demand for energy imports—thanks to Dangote Refinery and suppression of speculative trading.” As a result, Afrinvest has revised its 2025 average exchange rate forecast to N1,577.25 per dollar.

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