The Nigerian naira held steady at N1,532 per US dollar at the official market on Monday, buoyed by sustained foreign exchange interventions by the Central Bank of Nigeria (CBN). This stability comes as external reserves continue their upward trajectory, reaching $37.938 billion amid steady foreign inflows.
On the parallel market, the local currency appreciated slightly, trading at N1,535 per dollar, as demand pressures for foreign currency eased. The CBN’s injection of $80 million into the FX market last week, along with further sales to local commercial banks on Friday, provided crucial support to the market.
These interventions helped boost dollar liquidity and ease the pressure from businesses and eligible market participants seeking foreign exchange. The naira has gained approximately 1.27%—or N19.36—at the official window since the beginning of the year, closing at N1,530 on June 30.
Meanwhile, in the informal market, the currency has strengthened by about 9.15% year-to-date, gaining N140 to trade at N1,565 by the end of H1 2025. Analysts credit ongoing structural reforms initiated by the apex bank for restoring investor confidence and reinforcing transparency across the FX ecosystem.
Cowry Asset Management forecasts a further strengthening of the naira, projecting it could stabilize around N1,500 by year-end, supported by improved macroeconomic indicators and consistent capital inflows.
Data from the CBN show external reserves surged from a low of $33.02 billion in January 2024 to a peak of $40.88 billion by the start of 2025. However, reserves dipped by 9.86% in the first half of 2025, falling to $37.21 billion as of June 30.
According to Cowry Asset, the recent improvements are tied to reforms like FX rate convergence, electronic FX platforms such as BMatch, higher interest rates, and improved transparency in forex operations.
On the global front, oil prices remained largely stable amid mixed economic signals from the U.S., intensifying trade friction, and additional sanctions against Russia by the European Union. Brent crude settled at $69.28 per barrel, while WTI declined slightly to $67.34. Gold prices rallied on the back of a weakening dollar, with spot gold rising 0.4% to $3,351.18 per ounce.
