Market News

Nigerian naira began the new trading week on a positive note, recording a slight appreciation against the United States dollar at the official foreign exchange window. 

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This comes amid a modest rise in the country’s external reserves, providing a glimmer of optimism for stakeholders closely monitoring the foreign exchange market.

According to data published by the Central Bank of Nigeria (CBN), the naira appreciated marginally to trade at N1,534.21 per dollar on Monday, July 28. This represents a minor gain of 51 kobo when compared to the closing rate of N1,534.72 recorded on Friday, July 25.

Though modest, the movement reflects a cautious recovery of the naira in the Investors and Exporters (I&E) window.

However, the situation was slightly different in the parallel market, commonly referred to as the black market, where the naira experienced a mild depreciation.

On Monday, the currency traded at N1,538 per dollar, a decline of one naira from the previous rate of N1,537 recorded on Friday.

The gap between the official and parallel market rates continues to reflect persistent liquidity challenges and speculative demand for foreign currency in the informal segment of the market.

In a related development, Nigeria’s external reserves showed a slight uptick, signalling a potential boost in the country’s ability to defend the local currency.illion recorded on the preceding day.

Analysts attribute the increase in reserves to improved oil export earnings and inflows from foreign investors responding to recent policy reforms by the federal government.

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Market analysts have continued to call for stronger fiscal and monetary coordination to sustain currency stability.

They argue that while periodic gains are encouraging, more needs to be done to increase dollar supply and manage inflationary pressures that continue to impact the value of the naira.

The Central Bank of Nigeria has maintained that it remains committed to stabilising the foreign exchange market through various interventions and policies aimed at attracting investment, improving transparency, and narrowing the gap between the official and parallel market exchange rates.

As the week progresses, market participants will continue to monitor macroeconomic indicators and foreign exchange flows, looking for signs of sustained recovery or further volatility in the naira’s performance.