Market News

By Grace Alegba

The Nigerian Naira saw a marginal depreciation against the U.S. dollar on Monday, opening the trading week at N1,532.54 in the official foreign exchange market, according to data published on the Central Bank of Nigeria’s (CBN) official website.

This represents a 20 kobo loss, or a 0.01% decline, compared to the previous closing rate of N1,532.34 per dollar on Friday, July 18, 2025.

The slight weakening of the Naira reflects ongoing challenges in Nigeria’s foreign exchange market, where demand for dollars continues to exert pressure on the local currency.

Despite the minor dip, the Naira’s relative stability at the official window suggests cautious market sentiment, bolstered by the CBN’s interventions to manage liquidity and curb volatility.

The CBN has maintained measures such as regular forex auctions and restrictions on speculative trading to support the Naira, though external factors like global oil prices and foreign reserve levels remain critical influencers.

Analysts note that the Naira’s performance aligns with broader economic dynamics, including Nigeria’s reliance on oil exports, which account for over 80% of its foreign exchange earnings.

Recent data from the Nigeria Extractive Industries Transparency Initiative indicates that oil revenue fluctuations have impacted reserve levels, which stood at $36.2 billion in June 2025, slightly down from earlier highs.

This, coupled with persistent demand for dollars to fund imports and foreign debt servicing, continues to challenge the CBN’s stabilization efforts.

In the parallel market, the Naira reportedly traded at a wider margin, with rates fluctuating between N1,600 and N1,620 per dollar on Monday, highlighting the disparity between official and unofficial markets.

The CBN has intensified efforts to narrow this gap through enhanced monitoring of Bureau de Change operators and stricter regulations on illicit forex transactions.

Looking ahead, market watchers anticipate that the Naira’s trajectory will depend on the CBN’s ability to sustain forex supply and the government’s progress in diversifying the economy.

The CBN is expected to continue its proactive measures, including potential rate adjustments and increased dollar injections, to maintain stability in the official market.