CBN gives reason Naira is rising against dollar

The Central Bank of Nigeria (CBN) has given reasons why the Naira is enjoying a bullish run.

 

CBN Governor Olayemi Cardoso said the rise of the naira is linked to the success of the policies it introduced aimed at boosting investors’ confidence.

 

Cardoso disclosed this in Abuja on Thursday, January 30, 2025, at the Monetary Policy Forum (MPF) with stakeholders.

 

The CBN boss said that the monetary regulator believes that the policies it introduced set Nigeria on the sustainable path to economic stability.

 

Nigeria has seen a relatively stable forex market, which has narrowed exchange rate disparity, and rising external reserves to over $40 billion as of December last year, per Guardian report.

 

The naira has been on a surge since this week due to a series of measures introduced by the CBN including the newly launched FX Codes to boost liquidity and transparency.

 

CBN had warned banks and currency traders of severe consequences if they violated the FX Code, asking them to embed it in their daily operations.

 

The FX Code launch and other CBN market-friendly policies are believed to be responsible for the naira’s bullish run in the forex markets.

 

Data from the Customs trade portal shows that the CBN reduced the exchange rate for cargo clearance three times in one week, from N1,522 per dollar to N1,507 and N1,500.

 

The naira’s rally has boosted investors’ confidence and injected fresh hopes in Nigeria’s forex markets.

 

On Thursday, January 30, 2025, the naira broke into the N1,400 ceiling after rallying the previous day.

 

The Nigerian currency appreciated 1.64% to close at N1,485.95 per dollar, the highest in January.

 

Currency dealers quoted the dollar at a high of N1,516 and a low of N1,470 per dollar.

 

Meanwhile, the naira traded flat in the parallel segment of the foreign exchange market at N1,640, the same as the previous day’s rate.