Naira Rises Strong Against Dollar as Week Opens, Despite Falling External Reserves

|By Adejumo Adekunle-

The naira began the week with a strong rebound against the dollar, appreciating by N9.53 at the official foreign exchange market.

According to official data from the Central Bank of Nigeria (CBN), the naira strengthened to N1,529.71 per dollar on Monday, July 1, 2025, from N1,539.24 recorded last Friday, marking a bullish start to the week.

Despite the gain at the official window, the exchange rate remained unchanged on the parallel market, where the naira traded flat at N1,570 per dollar, the same rate it closed with last week.

This slight momentum comes against the backdrop of a sharp decline in Nigeria’s external reserves. Figures show the reserves fell by $3.5 billion within the first half of 2025. As of June 26, 2025, reserves stood at $37.369 billion, down from $40.877 billion at the end of December 2024.

Analysts say the recent appreciation could be tied to increased supply of foreign exchange by the CBN or reduced demand pressures at the official market.

Recall that last Friday, the naira weakened at the official market but gained slightly at the parallel market, reflecting ongoing volatility in the country’s currency management.