According to data from the Central Bank of Nigeria (CBN), the naira closed at N1,529.71 per dollar, improving from N1,539.24 on Friday. This represents a gain of N9.53 for the local currency, offering a positive start to the trading week.
Black Market Rate Holds Steady
While the official market saw gains, the naira remained stable on the parallel market. On Monday, the currency traded at N1,570 per dollar, exactly the same rate it closed at the previous week.
This relative stability in the informal segment comes despite ongoing pressures on Nigeria’s foreign exchange supply and demand dynamics.
External Reserves See Significant Decline
The naira’s recent movements also coincide with a continued decline in Nigeria’s external reserves.
Official data shows that the country’s reserves fell by $3.5 billion in the first half of 2025, dropping to $37.369 billion as of June 26, down from $40.877 billion at the end of 2024.
Analysts have noted that persistent interventions by the central bank to stabilise the exchange rate, coupled with debt repayments and other external obligations, have contributed to the depletion of reserves.
Recent Market Volatility
Last Friday saw contrasting trends in the forex market: the naira weakened at the official window but appreciated at the parallel market. Such fluctuations highlight the ongoing challenges facing Nigeria’s foreign exchange system, including supply constraints, policy shifts, and market sentiment.
The latest appreciation at the official window, however, is a welcome sign for policymakers seeking to maintain exchange rate stability amid economic headwinds.
As trading continues this week, market watchers will be closely monitoring both official and parallel rates, as well as policy signals from the Central Bank of Nigeria, for further direction on the naira’s trajectory.