The naira appreciated against the dollar across the foreign exchange (FX) markets on Tuesday, the first trading day of July 2025, continuing a trend of relative currency stability driven by ongoing reforms.
At the Nigerian Foreign Exchange Market (NFEM), the naira strengthened marginally by ₦0.14, closing at ₦1,529.57 per dollar compared to ₦1,529.71 on Monday, according to data from the Central Bank of Nigeria (CBN).
The naira recorded gains in the parallel market, appreciating by ₦10 to close at ₦1,560, representing a 0.6 per cent increase from the ₦1,570 recorded the previous day.
The foreign exchange market recorded a notable boost in United States dollar liquidity last week, driven by increased inflows from Foreign Portfolio Investors (FPIs) and stronger sell-side participation. The improved supply supported a modest appreciation of the naira, which gained ₦6.43 to close at ₦1,545.20 per U.S. dollar, according to a report by Access Bank.
Looking ahead, sustained FPI inflows are expected to keep downward pressure on exchange rates in the near term, provided the current momentum in capital inflows is maintained, said analysts at Access Bank.
Africa’s foreign exchange landscape continues to reflect divergent economic realities across the continent, with Nigeria, Zimbabwe and South Sudan recording the sharpest currency depreciations against the U.S. dollar in 2024, according to exchange rate data compiled by Afreximbank and other sources.
The data shows that while some currencies remained relatively stable, others saw steep declines due to inflationary pressures, monetary policy shifts, fiscal imbalances, and in some cases, major exchange rate reforms.
BusinessDay