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

Increased demand for foreign payments on July 11, 2025, led to naira depreciation.

Data from the Central Bank of Nigeria (CBN) shows a decline in the exchange rate to N1,530. 26 per dollar at the official window from N1,525 the previous day.

According to reports, in two days, the exchange rate depreciated by N10, showing rising demand for dollars for foreign payments, noting that about $50 million was injected to ease pressure.

The dollar spot rate at the parallel segment of the foreign exchange market traded at N1,535, trading at a stable rate from Thursday, July 10, 2025, due to a stable US dollar demand.

Data from the apex bank showed that the exchange rate rose to an intra-day high of N1,535 per dollar and traded at a low of N1,516 before closing at N1,532.

CBN said that the NFEM rate is derived from Volumed Weighed and stands as the official exchange rate for the day.

Nigeria’s external reserves continued their rise, hitting $37.355 billion in the absence of FX interventions in the currency market, supported by inflows from various foreign sources, including the latest open market operations auction.

Meanwhile, the oil market faces a dire balance in the second half of 2025, with demand growth projections revised downward by the International Energy Agency (IEA) to 741,000 barrels per day for 2025, below the pre-trade war estimates.

Market Forces Africa reported that non-OECD economies are expected to drive 86% of demand growth. In contrast, OECD demand reduces by 120,000 barrels per day due to energy transition policies and economic stagnation.

The report noted that the outlook for Nigeria’s oil and gas sector in the second half of 2025 is directed by a complex mix of global headwinds, shifting supply-demand balances, and significant domestic reforms.

The apex bank will need stronger external reserves to defend the naira due to the reactivation of the naira debit cards by several Nigerian banks for offshore transactions.

Analysts believe that debit card use for offshore payments will increase FX outflows in the second half of 2025.

Nigeria’s foreign exchange earnings or inflows from hydrocarbons face uncertainties as oil markets are expected to tip into moderate oversupply as OPEC+ seeks to regain its share.

Non-OPEC supply by the US and Brazil continues to expand at a slower pace than in previous years.

The continued supply growth and subdued demand driven by slow global GDP growth and a plateauing Chinese economy create a challenging environment for price stability.

Legit.ng earlier reported that the Nigerian currency has maintained relative stability against the US dollar, beginning the week strongly.

Data by the Central Bank of Nigeria (CBN), released on Monday, July 7, 2025, shows that the Nigerian Foreign Exchange Market (NFEM) rate traded flat against the dollar.

According to the CBN data, the naira closed trading at N1,529.50 per dollar from N1,528 it traded on Friday, July 4, 2025.

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Source: Legit.ng