Naira Stabilizes: How CBN’s Forex Strategy Paid Off

May 2025 – Ibrahim Abdulsalam (U19MM1123)

– The Nigerian Naira has begun to stabilize following bold interventions by the Central Bank of Nigeria (CBN). In recent weeks, the Naira’s exchange rate in the parallel market has steadied around ₦1,200/$, and the official Investors & Exporters (I&E) window shows even stronger levels — marking a turnaround after months of volatility (Reuters, Bloomberg).

The CBN has flooded official reserves with foreign currency, launched digital platforms to moderate demand, and tightened regulations around parallel market operations (CBN Forex Reform Framework). Governor Olayemi Cardoso explained that these measures are key to restoring confidence and curbing inflation.

"The results are clear: the gap between official and parallel market rates has narrowed, showing tangible progress in exchange rate unification." – CBN Governor, Olayemi Cardoso

Economic analysts from the Nigerian Economic Summit Group anticipate that consistent supply, improved fiscal discipline, and enhanced oil output will sustain this momentum. Still, they caution that structural reforms are needed to lock in gains long-term.

Key Questions to Watch: Was CBN’s intervention timely or reactive? Can the current forex window system hold up under external shocks? How will this affect inflation, consumer spending, and investment across Nigeria?

Visit trusted sources for deeper insight: Bloomberg, Reuters, and Nigeria’s sovereign data hub at dpr.gov.ng.