The naira closed out July 2025 at N1,533.55/$ at the official market, the Nigerian Foreign Exchange Market, data from the Central Bank of Nigeria revealed on Thursday.
This is about 0.25 per cent weaker than the 1,529.71/$ that it had closed in June, indicating improved stability in the foreign exchange market.
In the middle of the month, the naira strengthened to a four-month high against the US dollar to close at 1518/$ on July 14th. This marks the naira’s strongest performance since March 14, 2025, and the first time it traded below N1520/$ since that period, signalling a wave of positive momentum for the nation’s currency.
However, since then, the currency has reverted to trading within the band of 1,530/$ – 1,535/$ at the NFEM. Market watchers have maintained that the interventions of the Central Bank of Nigeria have helped to provide stability for the naira alongside increased inflow of forex from foreign investors.
At the parallel market, the naira has also become more stable, with the spread between the official and parallel market rates closing. This helps to eliminate speculation in the forex market.
On Thursday, the naira depreciated at the parallel market by 32 bps to print at N1,545/$, according to CardinalStone.
Also, Nigeria’s gross foreign reserves have experienced some appreciation. As of July 30, 2025, it rose to about $39.36bn from $37.19bn at the beginning of the month. During the month, the CBN governor, Olayemi Cardoso, revealed that the reserves reached over $40bn, marking their highest level in 33 months.
He disclosed this at a symposium in Abuja, which coincided with the unveiling of the compendium, ‘Promoting Stability in an Era of Economic Reforms: The Journey So Far,’ celebrating the first anniversary of the Bank’s management team.
Meanwhile, the United States dollar was poised for its first monthly gain of the year against major currencies on Thursday, on the back of easing trade tensions and US economic resilience.
The US Federal Reserve left interest rates unchanged on Wednesday, ignoring persistent calls by President Donald Trump to lower borrowing costs. The Fed Chair Jerome Powell also indicated he was in no rush to cut rates.
According to Reuters, the dollar strengthened against the Japanese yen, trading at its highest level since May 28. It is on track to gain 4.4 per cent for July, making it the biggest monthly increase since December 2024. It was last up 0.62 per cent at 150.44.
The dollar index was flat at 99.85 after rising nearly one per cent in the previous session. It is on track for the first monthly gain in 2025.
