Naira rebounds to N1,518/$, strongest since March 2025

The naira recorded a remarkable rebound on Monday, rising to its highest level in four months at the official foreign exchange market, closing at N1,518.88 per dollar.

This gain was attributed to improved liquidity in the market and a moderation in demand for the US dollar.

According to figures released by the Central Bank of Nigeria (CBN), the naira appreciated by N11.38, representing a 0.74 percent increase from the N1,530.26 it traded at on Friday.

This marks the strongest performance for the currency since March 14, 2025, when it stood at N1,517.93 per dollar.

In the parallel market, popularly known as the black market, the naira maintained its value, closing at N1,545 per dollar, the same rate it recorded the previous week.

This points to relative calm in the unofficial market despite fluctuating conditions.

The currency’s rally came even though total forex inflows fell to $749.8 million last week from $1.76 billion recorded the week before.

Despite the drop, Foreign Portfolio Investors (FPIs) remained the major contributors to inflows, accounting for 46.13 percent for the eighth week in a row.

Non-bank corporates followed with 33.68 percent, exporters contributed 18.45 percent, while local individuals and international corporates made up less than 2 percent combined.

Although the naira gained on Monday, Daily Watch Nigeria reports that the local unit had weakened by N1.70 week-on-week last week at the Nigerian Autonomous Foreign Exchange Market (NAFEM) window, largely due to reduced inflows and increased outflows, particularly from importers and non-bank corporate entities. Interestingly, the black market rate appreciated by 0.97 percent over the same period.

In a positive development for Nigeria’s external reserves, the CBN also reported a rise of $173.88 million, taking gross external reserves to $37.36 billion as of July 10, 2025. This reversed the $138.30 million decline recorded the previous week.

Market analysts from Coronation Merchant Bank noted that exchange rate pressures are expected to remain under control in the long term, buoyed by steady dollar supply from the apex bank’s interventions and sustained foreign portfolio inflows.

The gradual resumption of international transactions on naira debit cards by several Nigerian banks has also been noted as a sign of confidence in the improving FX market conditions.

Banks like Providus Bank, First Bank, GTBank, UBA, and Wema Bank have resumed offering these services with new spending limits.