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Naira Appreciates Again as Analysts Predict Return to N1,500 Exchange Benchmark

Published 7 hours ago4 minute read

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The naira’s value rose again in the official foreign exchange market on Wednesday, July 2, 2025, closing at N1,525 per dollar, from N1,527 the previous day.

The Nigerian currency strengthened following the absence of elevated demand pressure in the FX market.

The naira continues to surged against the US dollar
Experts speak as the naira continues its gains in the FX markets. Credit: Novatis
Source: Getty Images

The naira has continued to rally against the US currency in the FX market, driven by sufficient FX liquidity levels amid growing foreign investors’ confidence.

Experts also cited increasing FX market regulations following the BMatch trading platform in December 2024, with forex intervention supported by Nigeria’s foreign exchange market.

Bureau de Change operators disclosed that FX hoarding is becoming increasingly challenging, citing the foreign exchange rate offers to the street traders to help stabilise the exchange rate.

Data from the Central Bank of Nigeria (CBN) shows that the exchange rate appreciated to N1,525.15 on Wednesday.

Currency dealers quoted the dollar spot rate at a high of N1,530 and a low of N1,524 per dollar.

Analysts are optimistic that the naira, having maintained a weeklong appreciation, will revert to N1,500 per dollar it traded last year, easing the standard of living of most Nigerians.

“There is hope that the naira will revert to N1,500 in a matter of weeks. It has held steady against the US dollar and other currencies for over a week. This is a signal that the CBN may be doing something right in the FX market,” Janet Ogochukwu, economist and senior banker, said.

Experts have also projected medium-term growth to hover around 3.5%, supported by domestic reform gains.

Market Forces Africa reported that the International Monetary Fund (IMF) has applauded Nigeria’s reforms, citing a surge in gross net FX reserves last year, with a strong current account surplus and improved portfolio inflows.

The Fund said in its official statement that Nigeria’s reforms to the FX market and foreign exchange interventions have stabilised the naira.

“Inflation should decline further in the medium term with continued tight macroeconomic policies and a projected easing of retail fuel prices”, the Fund said.

According to reports, the IMF disclosed that it welcomed steps taken by the Nigerian authorities to build the reserves and support market confidence and praised reforms to the FX market that supported price discovery and liquidity.

Experts predict new naira exchange rate amid naira's gains
The naira continues to gain as the CBN intervenes in the FX market. Credit: Picture Alliance/Contributor
Source: Getty Images

The IMF, however, called for the implementation of strong foreign exchange intervention guidelines focused on curtailing excess volatility, stating that the FX rate is an important shock absorber.

Meanwhile, oil prices climbed above two per cent on Wednesday, July 2, 2025, after Iran ended cooperation with the UN nuclear agency and the US inked a deal with Vietnam.

Reports noted that Brent crude climbed $1.47 to $68.58 per barrel, and the US WTI rose $1.46 to $66.91.

Also, gold prices rose as US employment data raised expectations of earlier interest rate cuts by the Federal Reserve.

Investors expected non-farm payrolls as spot gold prices inched up 0.3% to $3,348.60 an ounce, and US gold closed at $3,359.70, up by 0.3%.

Legit.ng earlier reported that the Nigerian currency, the naira’s value, rose against the US dollar as data showed that the CBN injected more than $96 million into the official foreign exchange market last week.

The apex bank’s interventions boosted the FX volume, supported by continued foreign investors’ confidence in the official forex window.

The dollar volume rose following CBN’s forex interventions, supported by the ongoing foreign investors' trust in the official market.

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Source: Legit.ng

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