Naira Steady at N1,532 after FX Injections, External Reserves Rise
The naira cleared at N1,532 per dollar at the official window, supported by sufficient US dollar liquidity at the Nigerian foreign exchange market after Apex Bank’s interventions.
In the parallel market, the exchange rate appreciated to ₦1,535 per greenback in the absence of foreign currency demand pressures. The Central Bank of Nigeria (CBN) injected $80 million to boost FX market supply last week, and there was another sale to local deposit money banks on Friday.
The interventions kept US dollar liquidity strong on Monday, reducing the weight of FX demand logged by companies and other eligible market participants. Year to date, the naira has gained 1.27%, or N19.36, of its value at the official market, closing at N1,530 on June 30.
In the first half, the exchange rate has appreciated by 9.15%, or N140, at the parallel market to N1565. The CBN has continued to implement reforms to enhance confidence and ensure transparency in the market. Analysts said positive balance of trade recorded also bolstered the prospects of a stable naira.
The outlook is positive, as Cowry Asset Limited projected the exchange rate to settle at N1500 in 2025 amidst improved macroeconomic indicators. Data obtained from the CBN showed that external reserves surged to $37.938 billion on successive inflows from foreign sources.
In 2024, external reserves appreciated due to key reforms by the CBN, with FX backlog clearing, raising interest rates, and tightening FX policy to drive flows, including the introduction of an electronic FX trading platform, BMatch.
Gross external reserves rose from a low of $33.02 billion in January 2024 to a peak of $40.88 billion by January 2025. In H1 2025, external reserves fell by 9.86%, from $40.88 billion at the start of the year to US$37.21 billion on June 30, 2025.
“This renewed confidence was largely driven by ongoing FX market reforms, particularly the convergence of official and parallel market rates, as well as improved transparency and efficiency in FX transactions.
“These reforms have enhanced investor trust, widened market access, and attracted sizable offshore flows, especially through strategic block trades in large-cap stocks,” Cowry Asset Limited said at a webinar.
In the global commodity market, oil prices were mostly steady as markets weighed mixed signals from U.S. economic data, trade tensions, and fresh EU sanctions on Russia over the war in Ukraine.
Brent crude slipped 24 cents to close at $69.28 per barrel, while U.S. West Texas Intermediate dropped 20 cents to settle at $67.34. Gold prices rose, supported by a weaker U.S. dollar and persistent global uncertainty, which lifted demand for the safe-haven asset.
Spot gold gained 0.4% to $3,351.18 per ounce, recovering some ground after a 1.1% decline the previous day. Platinum prices, however, eased after touching 2014 highs.
The planned retaliatory tariffs and new sectoral taxes may drive U.S. tariff rates beyond 25% – exceeding 1930s levels. These measures will likely fuel inflation in coming months. #Naira Steady at N1,532 after FX Injections, External Reserves Rise Africa Finance Corp. Secures $255m Syndicated Loan from UAE Banks
