Naira gains slightly in official market as CBN reaffirms stability commitment

The naira appreciated marginally against the United States dollar in the Nigerian Foreign Exchange Market (NAFEM) on Thursday, May 21st. It closed at N1,372.31 per dollar, a N1.03 (0.07%) gain from the previous session's N1,373.34.

In the official market, the naira also strengthened against the euro. Data from the Central Bank of Nigeria (CBN) showed the local currency gained N1.75 to close at N1,590.78 to one euro, compared with N1,592.53 on Wednesday.

However, the naira slipped slightly against the British pound. It dropped N0.26 from N1,840.00 to close at N1,840.26 to one pound.

In the parallel market, also known as the black market, the naira traded flat against the dollar at N1,390/$ at the GTBank FX counter, the rate was N1,379/$.

Interbank FX liquidity turnover for the session stood at $116.043 million, with 105 deals recorded. That is up from $68.020 million in the previous session.

CBN Governor: Exchange rate remains key anchor

The CBN has restated its commitment to ongoing reforms aimed at achieving a stable exchange rate and curbing inflation. Speaking after the Monetary Policy Committee (MPC) meeting, CBN Governor Yemi Cardoso said the exchange rate remains the key anchor of the bank's policy stance.

Cardoso noted that recent reforms to the market structure have reduced the need for large central bank intervention. He said daily foreign exchange turnover has increased sharply to about $550 million from roughly $100 million at the start of this administration. Intra-day surges have reached about $1 billion.

The governor projected that daily turnover could hit $1 billion as reforms deepen, boosting market confidence.

“Gross external reserves remained robust at US$49.49 billion as of 15th May 2026 compared with US$48.35 billion at end-March 2026, sufficient to cover 9.04 months of imports for goods and services. This strong buffer continues to reinforce investor confidence in the Nigerian economy and support exchange rate stability,” Cardoso said.

Other exchange rates

Below are the closing rates for other major currencies on Thursday:

CFA: N2.43
Yuan/Renminbi: N201.67
Danish Krone: N212.82
Euro: N1,590.78
Yen: N8.62
Riyal: N365.68
South African Rand: N82.95
SDR: N1,884.73
Swiss Franc: N1,738.20
Pound Sterling: N1,840.26
US Dollar: N1,372.31
WAUA: N1,877.34
UAE Dirham: N373.59

Earlier, the CBN introduced a major adjustment to its foreign exchange policy. It partially relaxed its 2024 cashless rule on Personal Travel Allowance (PTA) and Business Travel Allowance (BTA). Under the revised FX Manual, effective June 1, 2026, travellers can now receive 25% of their PTA and BTA in cash dollars. The remaining 75% will be processed electronically through debit and credit cards.