Naira Continues Upward Swing, Appreciates 4.21% Against Dollar in 3 Months

The Nigerian Naira has recorded a 4.21% appreciation against the United States Dollar over the past three months, signaling a measure of relative stability in the foreign exchange market amidst ongoing economic reforms by the Central Bank of Nigeria (CBN).

According to official exchange data, the Naira traded at ₦1,602.63 to the dollar on April 22, 2025. As of July 22, 2025, the rate had improved to ₦1,535.24 per dollar reflecting a gain of ₦67.39.

This modest but notable rebound comes in the wake of sustained monetary tightening by the apex bank, enhanced forex inflows, and a gradual return of investor confidence.

The CBN has also taken steps to unify exchange rates, clear a backlog of forex obligations, and crack down on speculative trading activities, all of which have contributed to stabilizing the currency.

Financial analysts attribute the gain to increased foreign direct investment inflows, improved crude oil receipts, and reduced demand pressure on the dollar.

“The Naira’s recent strength is a reflection of improving macroeconomic management and more transparent forex market operations.

However, despite the positive trajectory, concerns remain about the long-term sustainability of the gains. Structural imbalances, inflationary pressures, and lingering external debt obligations continue to challenge Nigeria’s economic outlook.

Nonetheless, the Naira’s recent performance has been welcomed by businesses and consumers alike, who have endured months of volatility in the forex market.

Market watchers will continue to monitor how the CBN navigates global and domestic economic headwinds in a bid to maintain currency stability going forward.