Naira Surges against Dollar in Official, Black Markets amid Fresh Inflows
- The Nigerian currency, the naira, has rebounded against the US dollar after a brief fall on Tuesday, July 8, 2025
- The naira surged against the dollar as market indices show two foreign exchange inflows from unknown sources
- Additionally, Nigeria’s external reserves have experienced a boost, and rose due to some inflows
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
After a slight pause on Tuesday, July 8, 2025, the Nigerian currency picked up and surged against the US dollar in the official window on Wednesday, July 9, 2025.
The local currency strengthened further in the currency market to close at N1,520 per dollar, supported by increased US dollar liquidity, with trades ranging from N1,520 and N1,530 per dollar.
Source: Getty Images
Naira gains as FX reserves rise
According to market data, market confidence surged in the currency market as findings showed that Nigeria’s external reserves regained their momentum.
The gross external reserves rose to $37.282 billion on Tuesday, July 8, 2025, following a rise in inflows from unnamed sources.
Data from the Nigerian Foreign Exchange Market (NFEM) shows that the official exchange rate for Wednesday, July 9, 2025, settled at N1,520.74 per dollar from N1,529.22 the previous day.
Naira vs. dollar: Where’s the place of investors?
Market Forces Africa reported that the exchange rate maintained an upward trend against the dollar despite zero interventions in July.
Experts say that Dangote Refinery has reduced forex pressure from product demand.
The mega facility has consistently pumped petroleum products, reducing imports, which has pressured Nigeria’s FX markets.
The recent petrol price cuts have also relieved consumers and importers.
Fore inflows improve
Foreign exchange market sentiment has risen with rates closer to fair value, while offshore participation in the CBN open market operations continues to enhance FX inflows.
Reports say several investment bankers in Nigeria have turned to naira bulls, with year-end projections ranging from N1,560 and N1,700 per dollar in the absence of increased demand shock.
Elsewhere, oil prices rose on Wednesday, supported by strong US petrol demand, renewed Red Sea shipping attacks, and a forecast for reduced US oil production.
Crude oil rises
Data shows that Brent crude rose 38 cents, or 0.54% to $70.53 per barrel, while WTI crude gained 43 cents, or 0.63%, to $68.76.
Meanwhile, gold prices edged higher as investors monitored ongoing trade negotiations involving the U.S., although a firmer U.S. dollar capped gains. Spot gold was up 0.3% at $3,309.24 per ounce after touching its lowest level since June 30 earlier in the session.
Experts have said that oil prices will remain steady in the global commodity market as the US increases its oil holdings.
Source: Getty Images
Despite months of supply increases, inventory levels remain high, showing that strong demand is absorbing the extra supply.
CBN releases fresh FX for dealers
Legit.ng earlier reported that the Nigerian currency maintained relative stability against the US dollar, beginning the week strongly.
Data by the 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
