Naira Shows Stability as Dollar, Yuan Ease Slightly. The Nigerian Naira continued to demonstrate signs of resilience on Monday, May 26, 2025, trading with relative stability in the black-market foreign exchange (FX) segment. After a week of moderate activity, the local currency managed to post marginal gains against the U.S. Dollar and Chinese Yuan, while remaining steady against the Euro and experiencing minimal fluctuations against the British Pound Sterling.
This trend comes amid renewed efforts by the Central Bank of Nigeria (CBN) to stabilize the forex market by boosting official supply and encouraging the unification of exchange rates. Analysts say that although significant challenges remain, current market indicators point to improved liquidity conditions and a cautious return of investor confidence.
Key Observations – May 26, 2025
• US Dollar (₦1583.63)
The Naira gained slightly against the dollar, which depreciated by -0.26% from the previous day’s rate. This modest improvement translates to a week-on-week decline of ₦12.01 for the U.S. currency, suggesting that forex supply is gradually improving in the parallel market. The movement also reflects reduced panic buying among importers and increased remittance inflows over the past week.
• British Pound (₦2151.55)
The Pound recorded marginal intraday movement, closing just slightly below Sunday’s value of ₦2151.87. With a net difference of only ₦0.32, the week closed with the rate nearly identical to its opening figure on May 20 (₦2151.32), indicating low volatility in the Naira-to-Pound exchange dynamics during the review period.
• Euro (₦1805.10)
The Euro held firm for two consecutive days, with no change recorded between May 25 and May 26. Overall, the Naira maintained a stable performance against the Euro, with percentage variation kept within a narrow ±0.5% band throughout the week.
Read More:
Exchange rate weekly review: Naira posts marginal gains
Naira holds steady as dollar trades at ₦1,610.97 – May 20, 2025
Naira gains 0.56% against dollar, strengthens further against British pound
• Chinese Yuan (₦219.82)
The Chinese Yuan saw a slight drop of -0.26%, continuing a gradual descent over the last few trading sessions. The trend is attributed to both a slowdown in yuan-denominated trade activity and a mild increase in dollar supply from the CBN and informal market sources.
Market Insight
Currency analysts believe the Naira’s performance this week reflects growing optimism about regulatory clarity and reforms introduced by the monetary authorities. While exchange rate disparities between official and parallel markets remain, the narrowing gap signals that policies aimed at unifying rates and improving transparency may be taking effect.
