Naira Ends 2-Week Winning Streak as Dealers Expect New Debit Card Limits to Drive Demand
- The naira has reversed its gains against the dollar after a two-week surge in the official foreign exchange market
- The development led to the CBN moderately adjusting the official rate following the renewed demand for the dollar
- Experts have said the naira will face more pressure as several Nigerian banks lifted restrictions on Naira cards for international payments
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The naira faced renewed pressure in the foreign exchange market on Tuesday, July 8, 2025, as demand outstripped supply for the first time in two weeks.
The Central Bank of Nigeria (CBN) quoted the official dollar rate at N1,529.22 per dollar, representing a slight depreciation from N1,528.33 the previous day.
Source: Getty Images
The naira tumbles after a two-week gain
Data from the Nigerian Foreign Exchange Market (NFEM) shows that currency dealers quoted the dollar at a high of N1,532.50 per dollar and a low of N1,527.
Analysts have said the reactivation of naira debit cards for international payments by Nigerian banks may fuel demand for forex, especially the dollar.
Several investment banking experts said they hope the authority can absorb the anticipated surge in US dollars from several users.
Banks lift restrictions on naira cards
A prior report by Legit.ng disclosed that several banks in Nigeria reactivated the use of naira cards for international payments and online transactions, three years after financial institutions barred the service due to dollar scarcity.
The move by commercial banks shows improved dollar availability in the Nigerian economy, but data from the CBN platform indicates that external reserves have continued to remain at $37 billion.
Some banks allowed their customers to use their Naira cards to settle international payments of up to $500 monthly, from $100 before the cancellation.
Naira vs dollar: Experts predict new rates
In the mid-year report, analysts at Anchoria Limited predicted a fair value for the Nigerian currency at N1,700 per dollar in 2025.
The company said the country’s openness to global financial markets leaves the local currency vulnerable to external shocks.
However, the firm disclosed that measures by the apex bank, including FX market reforms and enhanced transparency, have eased volatility in the first half of 2025.
According to the report, combined with improved forex buffers, the steps curtailed depreciation pressures that could have pushed the naira past N1,700 per dollar.
The naira remained relatively stable in the first half due to increased forex inflows to the retail segment, aided by the CBN’s move to allow Bureau de Change (BDC) operators to access official forex sources.
Experts keep hope alive for the naira
The development narrowed the spread between the official and parallel market rates to an average of 2.6% from the year to June.
Experts say they expect the naira to maintain its surge against the dollar, supported by a softer dollar on the global market, driven by oil prices and the escalating geopolitical tensions.
Source: Getty Images
With the country’s external reserves gradually strengthening and policy signs becoming market-friendly, confidence in the naira is improving, Market Forces Africa quoted Cowry Asset Limited as saying.
CBN releases fresh FX rates
Legit.ng previously reported that the Nigerian currency has maintained relative stability against the US dollar, beginning the week strongly.
Data by the Central Bank of Nigeria (CBN), released on Monday, July 7, 2025, shows that the Nigerian Foreign Exchange Market (NFEM) rate traded flat against the dollar.
According to the CBN data, the naira closed trading at N1,529.50 per dollar from N1,528 it traded on Friday, July 4, 2025.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
