Naira Holds Longest Stability Streak of 2025 Due to Exchange Rate Reforms

The naira is experiencing its longest stretch of stability this year, trading within a narrow range of ₦1,520 to ₦1,537 per dollar for nearly eight weeks — from mid-June to early August.

This period of calm follows a turbulent year for the currency, which saw a sharp rally in January, a steep slump in April, and a recovery in May and June. Market data indicates that during this latest phase, daily fluctuations have been limited to just ₦2–₦3, a stark contrast to the double-digit swings recorded in previous months.

The current stability is especially significant given the summer holiday season, a time when foreign exchange demand typically spikes as Nigerians travel abroad for vacations, education, and shopping. Analysts attribute part of this resilience to improved market confidence, bolstered by several banks’ recent announcement of naira debit card availability for international dollar transactions.

Under the leadership of Central Bank Governor Olayemi Cardoso, exchange rate reforms have aimed to restore order to the currency market. The impact has been visible since the year’s opening, when the naira strengthened from ₦1,538.50 to ₦1,475 per dollar in January before slipping to its weakest level of ₦1,644/$1 on April 9.

The subsequent recovery in May and June set the foundation for the ongoing period of steadiness.

With the naira holding firm despite seasonal pressures, economists say sustained reforms and market discipline could extend this stability — a development many hope will signal a lasting shift from the volatility of recent years.