Abuja, July 2, 2025 — The Nigerian naira recorded a significant appreciation in the official foreign exchange market this week, buoyed by a broader global slump in the US dollar and increased investor confidence in Nigeria’s monetary policies.
According to official data from the Central Bank of Nigeria (CBN), the naira closed trading on Monday, June 30, at ₦1,529.71 per US dollar, marking a notable gain from the ₦1,539.24 rate recorded the previous Friday. This development comes amid a wave of optimism following sustained interventions by the CBN and a series of policy reforms aimed at enhancing market liquidity and stabilizing the foreign exchange landscape.
Market analysts attribute the naira’s latest rally to a combination of internal and external factors. Globally, the US dollar has experienced its weakest stretch in over three years, driven by dovish signals from the US Federal Reserve and declining investor demand for dollar-denominated assets. The weakening of the greenback has created a favourable environment for emerging market currencies, including the naira, to recover some lost ground.
On the domestic front, the Central Bank’s ongoing forex market reforms, including transparent auction windows, renewed foreign investment inflows, and efforts to unify exchange rates, have contributed to bolstering market confidence. Financial experts also noted that improved oil receipts and targeted remittance flows have added to Nigeria’s foreign exchange reserves, further supporting the naira.
While the naira gained momentum at the official Nigerian Autonomous Foreign Exchange Market (NAFEM), it remained relatively stable in the parallel market, trading at around ₦1,570 per dollar — a slight narrowing of the gap between official and unofficial rates.
Reacting to the development, economists highlighted the importance of sustaining these gains through disciplined fiscal management, enhanced non-oil exports, and improved foreign investor relations. They warned, however, that the long-term health of the naira would depend on continuous reforms, rising domestic production, and geopolitical stability.
The CBN has reiterated its commitment to maintaining price stability and curbing speculative activities in the forex market. It also urged stakeholders to support its drive for a more resilient and transparent financial system.
The recent performance of the naira is being seen as a positive signal to both domestic and foreign investors, raising expectations for further gains if current macroeconomic conditions persist.
