Naira Ends July Slightly Weaker at ₦1,533.55/$ Despite Signs of Stability
The Nigerian naira closed July 2025 at ₦1,533.55 to the US dollar in the official market, slipping by 0.25% from ₦1,529.71 in June, according to data from the Central Bank of Nigeria (CBN). Despite the mild depreciation, analysts highlight growing signs of stability in the foreign exchange (FX) market, thanks to increased investor inflows and targeted interventions by the CBN. Mid-month, the naira hit a four-month high at ₦1,518/$ on July 14, its best showing since March, raising hopes for sustained recovery.
The latter half of July, however, saw the naira ease back into a narrow band between ₦1,530 and ₦1,535 per dollar, indicating a stabilized, though still pressured, currency. In the parallel market, where unofficial rates often diverge sharply from official figures, the naira also showed signs of steadying. It traded at ₦1,545/$ on July 31, after depreciating by 32 basis points, as reported by CardinalStone. Analysts noted that the narrowing gap between both markets is dampening speculation and fostering more transparent forex pricing.
Nigeria’s gross foreign reserves added a bright spot to the FX landscape, rising from $37.19 billion at the start of July to $39.36 billion by month’s end. CBN Governor Olayemi Cardoso even stated that reserves briefly topped $40 billion, the highest level in nearly three years, during a symposium in Abuja marking one year of the current CBN leadership. The boost in reserves has been credited with supporting the naira and creating a buffer for future monetary policy actions.
Globally, the US dollar had its own moment of strength, registering its first monthly gain of 2025, up 4.4% in July, its strongest monthly performance since December 2024. The Federal Reserve left interest rates unchanged this week, signaling patience despite political pressure for cuts. As the dollar surged against major currencies, particularly the yen, it further tightened global FX conditions a factor Nigeria’s monetary authorities will likely continue to monitor closely.
Source: Punch