Victor EzejaThe Nigerian naira recorded a mixed outcome in the foreign exchange market last week. While it witnessed volatility at the official window, it was relatively stable at the black market, trading below the N1,600 mark.
According to the Nigerian Foreign Exchange Market (NFEM) data, the official exchange rate, published by the Central Bank of Nigeria (CBN), the naira began last week on a note of depreciation. On Monday, 23 June, the local currency dropped to N1,548.52 from N1,547.36 on Friday of the previous week, losing N1.16. It further depreciated to N1,549.03 on Tuesday and recorded a slight drop to N1,549.26 on Wednesday.
Join our WhatsApp ChannelAfter rising to a three-month high of N1,536.08 on Thursday, 26 June 2025, the naira plunged again to N1,539.23 on Friday, 27 June, losing N3.12 against the dollar on a day-to-day basis, ending the week on a negative note.
However, the naira appreciated to N1,570 per dollar on Friday, at the black market, from N1,580 exchanged on Thursday.
Despite the volatility, Thursday’s rebound made the naira gain N8.12 at the official market on a week-on-week basis. It also gained N30 at the black market on a week-on-week basis.
READ ALSO: Naira Records Three-month High Of N1,536 Per Dollar At Official Market
The CBN has continued to play a significant role in stabilising the naira in the foreign exchange market through targeted interventions aimed at boosting FX supply to the market and a couple of other policy measures.
What to Expect this Week
Analysts have projected that the naira’s exchange rate is expected to remain at the current levels, at least in the midterm, due to the CBN’s supportive FX interventions, macroeconomic policy adjustments, and foreign capital inflow policies. Outcomes of the ongoing economic reform programmes are said to have improved sentiments about a potential positive outlook, consequently boosting investors’ confidence and perception of the Nigerian capital market.
While acknowledging the impact of persistent demand pressures on eroding gains made by the naira, analysts at Coronation Merchant Bank estimated that it might record appreciation if there is a continued inflow of FX from foreign portfolio investments (FPIs), exporters and corporates. FPIs have continued to account for the largest share of the total FX inflows over time, indicating sustained foreign interest in Nigeria’s fixed income market.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
