The naira opened the week on a softer note, trading at N1,533.67 per dollar at the Nigerian Foreign Exchange Market (NFEM), as reported by RateCaptain, a slight 0.08% decline from Friday’s N1,532.51. The currency fluctuated, hitting an intraday high of N1,535 and a low of N1,532, despite Nigeria’s external reserves rising to $40.72 billion as of August 13, 2025.
In the parallel market, the naira strengthened marginally to N1,543 per dollar, compared to last week’s average of N1,545. Analysts at Cowry Research project relative stability at the official window, supported by the Central Bank of Nigeria’s (CBN) ongoing interventions and improved foreign exchange inflows. However, they caution that a stronger U.S. dollar and declining crude oil prices could cap gains, with potential intermittent pressures from global market dynamics. In the parallel market, rates are expected to hold steady unless speculative demand or supply shortages emerge.
AIICO Capital reported that the CBN injected approximately $166 million into the market last week, reinforcing expectations of continued stability through policy refinements and fiscal measures to maintain liquidity. Cordros Capital echoed this optimism, noting that sustained foreign portfolio investor inflows, driven by carry trade opportunities and growing market confidence, will bolster the naira. Additionally, rising non-oil exports and reduced incentives for currency speculation are expected to support steady domestic inflows.
The naira’s performance reflects a delicate balance between domestic policy support and global economic challenges, with analysts emphasizing the CBN’s critical role in sustaining currency stability amidst external headwinds.
