The Nigerian naira strengthened by 8.5% in February 2025 on the parallel market, closing the month at ₦1,490/$, while it settled at ₦1,500/$ on the official market, marking a 1.7% month-on-month decline.
According to market reports, Nigeria’s foreign reserves dipped 3.2% month-on-month, standing at $38.46 billion as of Thursday. Analysts attribute this decline to the Central Bank of Nigeria’s (CBN) renewed efforts to stabilize the naira, particularly the resumption of payments for verified portions of the $7 billion forex backlog.
Despite volatility in the global oil market, the naira has demonstrated resilience, hovering around ₦1,500/$ in both the official and parallel markets. This marginal appreciation is seen as a reflection of easing demand pressure and the impact of recent monetary policies.
At the official market, the naira appreciated slightly, gaining 93 kobo to close at ₦1,500.15/$, while in the parallel market, it gained ₦5, settling at ₦1,490/$. The modest improvement in the exchange rate signals cautious optimism among market players, even as external pressures continue to influence forex reserves.
With ongoing interventions from the CBN and shifting global economic conditions, market watchers will be closely monitoring whether the naira can sustain its gains in the coming months.
