Data from the Central Bank of Nigeria (CBN) indicates that the naira maintained relative stability in the official foreign exchange market between May 23 and May 30, trading within a tight band of ₦1,579/$1 to ₦1,592/$1.
This marks a modest but significant improvement compared to the first week of May, when the local currency fluctuated between ₦1,607/$1 and ₦1,612/$1 in official trading.
According to the CBN, the naira gained 1.28% over the course of May in the official market a sign of improved sentiment and tighter monetary policy controls.
As of press time, official trading figures for Monday’s close had not yet been released, with market activities still in progress.
Parallel Market Sees Gains After Volatile Month
In the parallel (black) market, the naira also showed notable appreciation, strengthening to ₦1,610/$1 on Monday, up from ₦1,630/$1 at the close of trading on Friday.
This recovery comes after a challenging month for the currency on the informal market, where it depreciated by 1.24% from the start of May. However, the past week has seen some stabilization, with rates hovering between ₦1,618/$1 and ₦1,625/$1 from May 21 to May 29.
The naira’s parallel market value had started May at ₦1,610/$1, before experiencing a downward trend through mid-month.
Moody’s Upgrade Boosts Market Confidence
Analysts point to last week’s credit rating upgrade by global agency Moody’s, which raised Nigeria’s sovereign credit rating from Caa1 to B3, as a key driver behind the naira’s improved performance.
The upgrade signals a more optimistic outlook for Nigeria’s fiscal and economic reforms, bolstering investor confidence and easing pressure on foreign exchange demand.
