The Nigerian Naira saw appreciation against the US dollar across both the official and parallel foreign exchange markets on Tuesday, July 1, 2025, marking a continuation of its recent stability.
This trend is largely attributed to ongoing currency reforms.
According to data from the Central Bank of Nigeria (CBN), the naira slightly strengthened by N0.14 in the Nigerian Foreign Exchange Market (NFEM), closing at N1,529.57 per dollar, an improvement from N1,529.71 recorded on Monday.
In the parallel market, the naira gained N10, reaching N1,560 from N1,570 the previous day, a 0.6% increase.
The foreign exchange market experienced a significant increase in dollar liquidity last week. This surge was primarily driven by higher inflows from Foreign Portfolio Investors (FPIs) and increased participation from sellers.
An Access Bank report indicated that this improved supply led to a modest appreciation of the naira, which gained N6.43 to close at N1,545.20 per US dollar.
Looking ahead, analysts at Access Bank anticipate that continued FPI inflows will likely maintain downward pressure on exchange rates in the near term, provided the current momentum in capital inflows persists.
This suggests that the currency’s stability and potential for further appreciation are linked to sustained foreign investment.
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