The naira maintained a largely stable position against the U.S. dollar on Tuesday, with only marginal fluctuations recorded across the official and parallel foreign exchange (FX) markets. This development came as Central Bank of Nigeria (CBN) Governor Olayemi Cardoso announced that the country’s external reserves had reached $40.1 billion.
At the official Nigerian Foreign Exchange Market (NFEM), the naira closed at ₦1,535.23 per dollar, reflecting a mild depreciation of ₦2.69 or 0.2 percent, compared to the ₦1,532.54 rate reported the previous day, according to figures from the CBN.
Meanwhile, in the informal or black market, the naira closed unchanged at ₦1,530/$1, according to rates provided by street currency dealers on Tuesday.
Cardoso Highlights Foreign Reserves Growth
Speaking at a press briefing following the latest Monetary Policy Committee (MPC) meeting, Governor Cardoso revealed that Nigeria’s gross external reserves had climbed to $40.11 billion as of July 18, 2025, a level he said would provide approximately 9.5 months of import cover. However, CBN’s own online reserves tracker showed a more conservative figure with reserves rising from $37.93 billion on July 18 to $38.24 billion by the start of the week.
Cardoso attributed the stability in the FX market to a mix of positive factors, including increased foreign capital inflows, improved crude oil output, a surge in non-oil exports, and a marked reduction in aggregate imports.
Market Trends and Analyst Outlook
According to a market report by Access Bank’s research division, the FX market experienced an uptick in trading activity last week, driven largely by heightened demand. This led to a marginal decline in the naira’s value, closing the week at ₦1,536.64/$, a depreciation of ₦1.64.
However, the beginning of this week saw renewed strength in the local currency, especially in the parallel market, buoyed by a sharp increase in FX inflows. Total inflows surged to $1.31 billion, driven mainly by returning interest from foreign portfolio investors (FPIs). The influx of foreign capital has significantly narrowed the spread between the official and black-market rates now down to a mere ₦2 per dollar.
Market watchers expect the exchange rate to remain relatively steady in the near term, assuming no abrupt shifts in macroeconomic fundamentals or external conditions.
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