Naira Trades Flat at Official Market as CBN Makes Minimal FX Intervention

The Naira closed flat against the United States Dollar at N1,370.19/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, July 3. Market conditions improved slightly after the Central Bank of Nigeria (CBN) made minimal intervention through modest Dollar sales, boosting liquidity and supporting stronger trading activity.

Performance Across Market Segments

At the official market, the Naira appreciated against the Pound Sterling by N2.29 to settle at N1,829.88/£1 compared with the previous day's N1,832.17/£1. However, it marginally depreciated against the Euro by 4 Kobo to close at N1,568.32/€1 versus Thursday's closing price of N1,568.28/€1.

At the parallel market, the Naira also traded flat against the US Dollar at N1,390/$1. At the GTBank forex desk, it maintained stability at N1,832/$1.

Deal Volume and Market Support

Deals executed at the official market on Friday came in at $70.430 million across 82 interbank deals, down from $85.517 million the previous day. Easing pressure came after half-year profit-taking tapered down. Continued stronger policy signals from the CBN add to near-term support for the currency.

The minimal intervention by the central bank through modest Dollar sales helped lift liquidity and supported trading activity in the market.

Crypto Market Recovery

Meanwhile, the cryptocurrency market continued its recovery after June non-farm payrolls printed at 57,000, less than half the 113,000 consensus. This sent the implied probability of a September Federal Reserve rate hike from 64 per cent to 54 per cent and dragged AI stocks sharply lower. Weak labour data reduces inflationary pressure and, by extension, the Federal Reserve's justification for holding rates elevated. That transmission mechanism is direct: lower rate-hike odds compress the opportunity cost of holding non-yielding assets like crypto.

Bitcoin regained the $62,000 mark after it rose by 1.3 per cent to $62,475.29. Cardano (ADA) gained 6.6 per cent to trade at $0.1759, Ripple (XRP) appreciated by 3.5 per cent to $1.14, Ethereum (ETH) expanded by 2.4 per cent to $1,756.82, Dogecoin (DOGE) improved by 2.1 per cent to $0.0768, Solana (SOL) chalked up 1.8 per cent to $82.65, TRON (TRX) increased by 1.5 per cent to $0.3235, and Binance Coin (BNB) soared by 1.4 per cent to $569.12. The US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.

For Nigerian businesses and consumers, the flat Naira performance signals a period of relative stability at the official window, though the gap between official and parallel rates remains a concern. Minimal CBN intervention suggests the central bank is testing market forces while providing just enough liquidity to prevent sharp swings.