Naira gains across dollar, pound, euro as external reserves hit $51.46 billion

The Nigerian naira appreciated against the US dollar, British pound, and euro in the official foreign exchange market on Monday, July 6. Fresh figures from the Central Bank of Nigeria (CBN) show the naira closed at N1,368.27/$1 in the official market, extending its recent gains.

Official market performance

The local currency gained N1.92 or 0.14% from N1,370.19/$1 to N1,368.27/$1 on Monday at the Nigerian Foreign Exchange Market (NFEM). Against the British pound, the naira strengthened from N1,829.89/£1 to N1,826.91/£1. The local currency also gained N5.63 against the euro, closing at N1,562.70/€1 from N1,568.32/€1.

At the GTBank FX counter, the naira appreciated by N1 against the US dollar from N1,832/$1 on Friday to N1,831/$1.

Parallel market and reserves

In the parallel market, popularly known as the black market, the naira weakened to N1,410 per dollar. BusinessDay reports that the Nigerian currency depreciated by N13 week-on-week from N1,397 per dollar quoted on Monday last week, even as it lost N2 compared with N1,408 traded on Friday.

Data released earlier show that Nigeria's gross external reserves stand at $51.46 billion, boosted by ongoing forex inflows.

What analysts say

Ayodeji Ebo, Managing Director of Stanbic IBTC Holdings Plc, said: "Higher foreign exchange liquidity, as well as investor sentiment, are the primary drivers behind the local currency's stability, especially with demand and supply dynamics in the FX market having become more balanced." He added: "The CBN's proactive policy actions have continued to foster transparency and price discovery in the market."

CBN official exchange rates for Monday, July 6

The CBN published the following selling rates: CFA at N2.38, Chinese Yuan (Renminbi) at N201.32, Danish Krone at N209.04, Euro at N1,562.70, Japanese Yen at N8.43, Saudi Riyal at N364.34, South African Rand at N84.27, SDR at N1,857.41, Swiss Franc at N1,697.81, Pounds Sterling at N1,826.91, US Dollar at N1,368.27, WAUA at N1,859.53, and UAE Dirham at N372.54.

Meanwhile, Bureau de Change (BDC) operators said they have yet to access the official foreign exchange window announced by the CBN. This is despite the recent steady gains of the naira, which narrowed the gap between the official and parallel market exchange rates. Recent market data showed that the naira appreciated by nearly 7% within two weeks across both segments of the market, reaching one of its strongest levels in about two years.

For Nigerian businesses and consumers, the sustained naira gains in the official market signal improving forex liquidity and policy confidence, though the widening gap with the parallel market suggests demand pressures persist.