The Naira appreciated on Friday, closing at N1,492.49 per Dollar in the official market, marking a 0.44% increasefrom Thursday’s rate of N1,499.07.
CBN Reforms Boosting Naira Stability
According to data from the Central Bank of Nigeria (CBN), the Naira has remained relatively stable following ongoing FX market reforms aimed at improving transparency. Analysts have praised the steady progress of the local currency since December 2024.
However, Prof. Jonathan Aremu, a former CBN Director, warned that it is too early to celebrate, citing past fluctuations.
Experts Call for Increased Production
Aremu emphasized that sustaining the Naira’s gains requires boosting local production rather than relying solely on monetary policy.
“The economy needs a higher volume of goods and services. The CBN should support the availability of quality goods, not just focus on reducing money supply,” he said.
He further noted that expanding production would reduce the demand for foreign currency, strengthening the Naira.
Declining FX Reserves a Concern
Meanwhile, Cordros Securities, in its weekly update, attributed the Naira’s appreciation to reduced demand pressuredespite declining foreign exchange reserves.
The report revealed that FX reserves fell by $241.50 million to $38.46 billion as of February 27, marking seven consecutive weeks of decline.
Despite this, Cordros Securities expects FX liquidity to remain strong, with the CBN likely to intervene during periods of high volatility to maintain market stability.
