How the naira is gaining ground against the dollar in the FX market

• The naira has appreciated again in the official foreign exchange market on Tuesday, June 3, 2025
• Data from the Nigerian Foreign Exchange Market (NFEM) shows that the naira appreciated to N1,579 per dollar from N1,580
• Analysts have predicted that the naira will continue its upward trajectory if the CBN continues its FX interventions

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The reforms and interventions of the Central Bank of Nigeria (CBN) are paying off and positively impacting the naira.

The Nigerian currency, which opened in June on a positive note, has continued to solidify its ground against the dollar and other foreign currencies.

CBN's FX policies are paying off as the naira gains in all markets Credit: Picture Alliance/Contributor
Source: Getty Images

The naira defies predictions

Data from the Nigerian Foreign Exchange Market (NFEM) shows that the naira appreciated on Tuesday, June 3, 2025.

The naira closed Tuesday trading at N1,579 per dollar, up from N1,580.

The Nigerian currency’s rebound began on May 29, 2025, after dropping to N1,592 in the official market.

However, on Friday, May 30, 2025, the local currency appreciated to N1,585.50 per dollar, closing May on a positive note.

Data released by the CBN shows that the dollar spot rate was quoted at a high of N1,582 and a low of N1,577.

Experts expect more naira appreciation

Analysts have predicted better days for the Nigerian currency based on the current reforms of the apex bank.

According to them, based on the CBN reforms, the naira is poised for a major rebound against the dollar.

“The naira will continue its resurgence if the CBN continues to sanitise the system,” Janet Ogochukwu, senior banker and economist, said.

According to Ogochukwu, the predictions of the African Development Bank (AfDB) that the naira will depreciate by six per cent in 2025 may not happen if the CBN puts things in place.

“This is not the first time international finance agencies have predicted doom for the naira. Is it not concerning that the likes of the UK’s The Economist did not release Nigeria’s forecast for 2025?“This is to tell you that the naira is unpredictable in its surge against major currencies,” she said.

BusinessDay reports that analysts at Afrinvest Securities Limited estimated that the naira could maintain its current positive movement in June.

Experts predict better days for the naira as CBN continues forex interventions. Credit: NurPhoto/Contributor
Source: Getty Images

Forex reserves rise by $460 million

They anticipated that the naira would maintain similar performance across all forex markets.

Meanwhile, data from the CBN CBN figures show that the reserves added $460 million or 1.2% from $38 billion at the beginning of May to $38.46 billion as of May 29, 2025.

The movement shows improved foreign exchange inflows, which allows the apex bank more buffer to sustain its FX interventions to strengthen the naira.

Nigeria, China sign deal to reduce dollar dependence

Legit.ng earlier reported that the Nigeria-China Strategic Partnership has disclosed that Nigeria would soon ink a deal on Digital RMB with China to allow a direct conversion of naira to Chinese Yuan.

The digital renminbi (RMB) is a central bank digital currency issued by the Chinese apex bank, the People’s Bank of China.

The Director-General of the NCSP, Joseph Tegbe, disclosed that the deal was expected to reduce Nigeria’s dependence on the US dollar.

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Source: Legit.ng