Naira Firms Up Against World Currencies, Exchanges for N1,158 against Dollar

The Nigerian naira has indeed reached a four-month high against the US dollar, closing at N1,518/$ on the Nigerian Foreign Exchange Market.

This marks the naira’s strongest level since March and its first time falling below N1,520/$ since then. Several factors have contributed to this surge.

The Central Bank of Nigeria’s direct involvement has played a significant role. A $50 million sale last week and a successful Open Market Operation auction have attracted international investors and boosted dollar liquidity.

Nigerian banks have also lifted the moratorium on using naira-funded debit cards for international transactions due to improved dollar liquidity. Major banks like United Bank for Africa, FirstBank, GTBank, and Wema Bank have announced the resumption of international transactions on naira debit cards.

Additionally, Nigeria’s average daily crude oil production rose to 1.547 million barrels per day in June, the highest level since January, contributing to the naira’s stability.

Robust foreign portfolio inflows and ongoing dollar liquidity from CBN interventions have also driven the naira’s surge.

The naira’s outlook appears promising, with exchange rate pressures likely to remain contained in the long term. However, global economic trends and domestic economic policies will continue to influence the naira’s performance.

Analysts expect the Nigerian currency to end the year near N1,556 per dollar, its average exchange rate in the first six months of 2025. Some even predict that Nigeria’s foreign exchange reserves could hit $41 billion by the end of the year.