According to data published by the Central Bank of Nigeria (CBN), the naira traded at ₦1,531.95/$ on Monday, August 4, 2025, strengthening by ₦1.79 compared to the ₦1,533.74/$ it closed at on Friday, August 1.
While the appreciation was modest, it reflects ongoing efforts by monetary authorities to stabilise the exchange rate, bolstered in part by an uptick in Nigeria’s foreign reserves. As of August 1, the external reserves stood at $39.54 billion, up from $39.36 billion recorded just two days earlier on July 30. This steady growth signals a slight buffer for the economy in the face of external shocks and currency volatility.
Meanwhile, the parallel market remained unchanged, with the naira trading flat at ₦1,560/$, the same rate recorded at the close of trading last Friday. The widening spread between the official and parallel market rates continues to underscore liquidity constraints and speculative pressure in the informal market.
Analysts suggest that sustained growth in external reserves—driven by improved oil receipts, diaspora remittances, and tighter FX management policies—could help ease pressure on the naira in the medium term. However, they caution that more structural reforms will be needed to close the gap between the official and black market rates.
The Central Bank, under Governor Olayemi Cardoso, has repeatedly stated its commitment to exchange rate stability and inflation control, prioritising market reforms and improved transparency in FX operations. Monday’s modest appreciation, though not dramatic, may be seen as a small win in the broader strategy to restore confidence in the currency.