Victor EzejaThe Nigerian naira ended the week on a positive note as it recorded appreciation across official and parallel exchange rate market windows on Friday, 18 July 2025.
After depreciating in the middle of the week, the naira rebounded on Friday at the official market. The Central Bank of Nigeria (CBN) data showed that the naira exchanged ₦1,532.34 against the United States dollar at the Nigerian Foreign Exchange Market (NFEM) on Friday. This is a slight appreciation when compared to ₦1,533.11 per dollar recorded on Thursday.
Join our WhatsApp ChannelThe naira had opened the week on a positive note with the exchange rate closing at ₦1,518.88 against the previous week’s ending of ₦1,530.26 per dollar. The local currency, however, dropped to ₦1,530.25 on Wednesday, after the public holiday declared by the Federal Government in honour of late former President Muhammadu Buhari, who was buried on Tuesday, 13 July. It further depreciated to ₦1,533.11 on Thursday.
Naira Stability and Inflation Decline
Also, the naira strengthened at the black market to ₦1,535 per dollar on Friday. This reflects ₦5 gain from ₦1,540 recorded on Thursday. The local currency had maintained stability at the parallel market.
Prime Business Africa reports that with the latest exchange rate result, the gap between the official and black markets has closed at the currency market.
Commenting on that, presidential spokesman, Bayo Onanuga, said naira harmonisation across foreign exchange markets has been achieved under President Bola Ahmed Tinubu’s administration.
He affirmed that the renewed Hope Agenda is not a slogan but real.
“Harmonization of exchange rate achieved. Renewed Hope Agenda is not just a slogan. It is real,” Onanuga wrote on X on Friday.
Economic analysts are upbeat about the naira maintaining stability and the economy being on the cusp of recovery.
Economist and Chief Executive of Financial Derivatives, Bismark Rewane, said Nigeria’s currency has stabilized.
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He attributed the positive performance of the naira in recent months to the Central Bank of Nigeria’s monetary framework and transparency in the country’s foreign exchange market.
Mr Rewane, who featured on Channels Television’s Business Morning on Thursday, said: “The currency is strengthened because of the discipline in the monetary policy framework and explicit inflation targeting, and having a transparent foreign exchange market.
“If we didn’t have that by now, Nigeria’s inflation data would be frightening to those of us domestically and internationally. But right now, everybody seems to agree that the Nigerian economy is leaping its way out of crisis.”
This comes as Nigeria’s inflation rate further dropped in June to 22.22 per cent from 22.97 per cent recorded in May 2025.
Foreign Reserves Rises
Nigeria’s foreign exchange reserves rose week-on-week by $498.76 million to $37.85 billion on 17 July from $37.36 billion recorded on 10 July 2025.
This indicates that the nation’s external asset base has significantly increased. The move is a part of continuous attempts to attract foreign investment and stabilize the naira.
Higher dollar inflows from oil exports, remittances from the diaspora, and rekindled investor confidence brought on by recent monetary and fiscal reforms are the main causes of the increase.
The modest increase in reserves, according to analysts, is good for the economy because it makes the Central Bank more capable of defending the naira, funding imports, and fulfilling its commitments to other countries.
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.
