Naira Trades Steady as Dealers Buy Dollar at New Rate, FX Reserves Rise to $38.765 Billion
- The naira remained stable in the foreign exchange market on Monday, July 28, 2025, after the CBN action
- The latest naira trend came as the Central Bank of Nigeria (CBN) injected about $81 million to improve market liquidity
- Also, Nigeria’s external reserves rose to about $38.765 billion, which analysts said showed robust economic activity
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian currency, the naira, traded flat at N1,534 per dollar in the Nigerian Foreign Exchange Market on Monday, July 28, 2025, following the latest forex interventions of $81 million by the Central Bank of Nigeria (CBN).
CBN data on Monday shows that the naira settled at N1,534.20 per USD at the official market, slightly up from N1,534.71 at the close of trading on Friday, July 25, 2025.
Source: Getty Images
CBN intervention saves the naira
Currency dealers quoted the dollar spot rate at an intra-day high of N1,533.50 and a low of N1,530, which shows possible demand pressure.
According to Market Forces Africa, the currency market experienced a moderate fall in the naira’s value against the US currency last week due to soft forex pressures before CBN’s intervention.
A prior report by Legit.ng disclosed that the apex bank sold $81 million to banks and other authorised dealers to increase dollar volume and supply availability, and other eligible forex users.
FPI inflows dip to $970 million
The financial sector regulator’s intervention came after a negative tide at the official window amid a slowdown in FX inflows.
Market data shows that forex inflows reduced by more than 25% per week to settle at $979 million, down from $1.31 billion recorded the previous week.
On the flip side, Nigeria’s gross FX reserves continued their upward trend, hitting $38.765 billion.
Analysts express optimism on the naira’s fortune
Analysts are optimistic that the recent rise in the nation’s reserves is a good sign for the local currency.
“We know that there is a positive correlation between the reserves and the naira’s strength, Osas Igho, a financial analyst, said.
“Whenever there is an increase in reserves, it means there has been an accretion, which shows economic activity, and this will lead to local currency gain,” he said.
Janet Ogochukwu, senior banker and an economist, agreed with Igho, stating that the naira’s relative stability was due to a combination of reserves accretion and foreign portfolio investors’ (FPIs) renewed appetite for Nigerian stocks.
“There is a surge in appetite for Nigerian stocks, which is why investors are pumping more FX into the local bourse.
This will affect the naira positively, including the rise in Nigeria’s FX reserves,” she said.
Source: Getty Images
Naira strengthens against the dollar
Legit.ng earlier reported that Nigeria’s local currency, the naira, appreciated against the US dollar at the Nigerian Foreign Exchange Market (NFEM), buoyed by a boost in foreign reserves and improved market sentiment.
According to official data from the Central Bank of Nigeria (CBN), the naira traded at ₦1,534.78 per dollar on Thursday, stronger than the ₦1,535.61 recorded the previous day.
This marks a reversal from a brief two-day slump, signalling renewed stability in the exchange market.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
