Dollar Crashes Massively in Forex Markets as Naira Records Highest Appreciation
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian currency has recorded the highest gain in over 20 days against the US dollar.
The naira beat steep predictions, especially from the African Development Bank (AfDB), to emerge stronger in the foreign exchange markets.
Source: Getty Images
According to data released by the Central Bank of Nigeria (CBN) on Wednesday, June 4, 2025, the naira recorded the highest appreciation in over 20 days.
The data shows that the local currency closed trading at N1,564, up from N1,579 per dollar.
The last time the naira rose this high in the forex market was on May 20, 2025, when it closed at N1,560 per dollar.
The current gain represents N15 appreciation against the US greenback.
Details from the Nigerian Foreign Exchange Market (NFEM) show that currency dealers quoted the dollar spot rate at a high of N1,577 and a low of N1,556.
Also, data from the parallel segment of the foreign exchange market, known as the black market, shows that the naira appreciated to N1,630 per dollar from N1,632 the previous day.
The new naira rate comes as analysts predict 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.
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.
Source: Getty Images
The movement shows improved foreign exchange inflows, which allows the apex bank more buffer to sustain its FX interventions to strengthen the naira.
Legit.ng earlier reported that CBN has increased the Customs foreign exchange rates for cargo clearance at Nigeria’s sea and airports.
The new rate comes amid the naira’s depreciation in the Nigerian foreign exchange market.
Data from the Customs trade portal shows that the apex bank increased the rate to N1,590.247 per dollar, up from N1,579.241.
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Source: Legit.ng
