Victor EzejaThe Nigerian naira recorded a loss against the U.S. dollar at the official foreign exchange market in July 2025.
The Central Bank of Nigeria (CBN) data indicate that the naira traded N1,533.55 per dollar at the Nigerian Foreign Exchange Market (NFEM) on Thursday, the last day of July. This reflects a month-on-month loss of ₦3.84 per dollar when compared to N1,529.71 recorded on 30 June 2025.
Join our WhatsApp ChannelOn a day-on-day basis, the local currency saw a slight gain of ₦0.97 against the dollar, having traded at ₦1,534.52 on Wednesday.
CBN data further show that the naira recorded a high spot rate of ₦1,535, and the lowest rate of ₦1,533 per dollar on Thursday.
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At the parallel market, also known as the black market, the naira dropped to ₦1,560 per dollar on Thursday from ₦1,550 the previous day. This means the naira lost N10 at the black market.
Analysts attributed the drop in the naira value against the dollar at the black market to increased demand for FX on Thursday.
The naira had hit a four-month high against the reserve currency in the middle of the month, hitting ₦1,518 per dollar on 14 July.
The foreign reserves recorded an increase in the last one month. The CBN data revealed that the external reserves rose month-on-month by $2.15 billion from $37.21 billion on 30 June 2025 to $39.36 billion as at 30 July 2025.
The FX reserves surge was attributed to FX market reforms, improved diaspora remittances, and higher foreign portfolio inflows, supported by a rebound in crude oil production.
Analysts are optimistic about the naira maintaining stability in 2025, citing key factors and reforms that have contributed to this positive outlook. These include CBN intervention in the FX market, by way of selling dollars to authorised dealers to boost liquidity; improved transparency and efficiency in the forex market, entrenched by the introduction of the Electronic Foreign Exchange Matching System (EFEMS), leading to a more predictable exchange rate; external reserves surge; rising investor confidence and moderating inflation.
Analysts at United Capital Research forecast the naira to close the year between ₦1,490/$ and ₦1,520/$.
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.
