The Nigerian currency, the naira, started the new trading week on a weak note against the US dollar across most foreign exchange markets, although it managed to gain against some other major global currencies.
Naira Performance at NAFEX Window
At the Nigerian Foreign Exchange Market (NAFEM), also known as the official window, the naira experienced a marginal decline. It traded at N1,371.04 per US dollar, representing a 0.1 percent drop compared to the previous week's closing rate of N1,370.89 per dollar recorded on Friday, May 15. This slight depreciation underscores the continued pressure on the local currency in the official market.
Mixed Performance Against Other Currencies
In contrast to its performance against the dollar, the naira recorded gains against the British pound sterling and the euro. It appreciated by N20.77 against the pound, moving from N1,851.38 to N1,830.61. Similarly, it strengthened against the euro by N7.91, trading from N1,602.98 to N1,595.07. These gains provided some relief for the currency amid the broader weakness.
Rates at GTBank FX Desk and Black Market
On the GTBank foreign exchange desk, the naira weakened further against the US dollar, depreciating by N2 to close at N1,383 per dollar, compared to N1,381 in the previous week. Meanwhile, the parallel market, commonly referred to as the black market, remained unchanged at N1,385 per dollar, indicating stability in that segment.
Official NAFEX Rates for Other Currencies
The official NAFEX rates for other major currencies were as follows: CFA franc at N2.44, Chinese yuan/renminbi at N201.31, Danish krona at N213.42, euro at N1,595.07, Japanese yen at N8.64, Saudi riyal at N365.35, South African rand at N82.37, Special Drawing Rights (SDR) at N1,882.96, Swiss franc at N1,744.55, pound sterling at N1,830.61, US dollar at N1,371.04, West African Unit of Account (WAUA) at N1,880.57, and UAE dirham at N373.24.
CBN Releases New FX Framework
In a move expected to boost market confidence, the Central Bank of Nigeria (CBN) launched the fourth edition of its Foreign Exchange Manual on Friday, May 15. The revised framework is scheduled to take effect from June 1, 2026. Speaking at the launch in Abuja, CBN Governor Olayemi Cardoso stated that the initiative reflects the apex bank's commitment to strengthening macroeconomic stability and modernizing Nigeria's foreign exchange administration. The new framework is part of ongoing reforms aimed at improving transparency, liquidity, and confidence in the foreign exchange market.
Nigeria's Foreign Reserves Decline
Earlier reports indicated that Nigeria's external reserves have been on a downward trend. Data from the CBN showed that reserves dropped to $49.57 billion, down from a recent peak of $50.02 billion recorded in March. This decline has persisted for seven consecutive days, raising concerns about the country's external buffers. Additionally, Nigeria's current account surplus narrowed in 2025, reflecting rising external pressures. Provisional balance of payments data published by the CBN showed the surplus fell to $14.04 billion in 2025 from $19.03 billion in 2024, though it remained above the $6.42 billion recorded in 2023.
