The Nigerian naira continued its positive momentum against the US dollar on Friday, buoyed by an increase in the country’s external reserves. According to data from the Central Bank of Nigeria, the naira closed trading at N1,534.72 per dollar, showing a marginal improvement from Thursday’s rate of N1,534.79 per dollar. This movement marks a daily gain of N0.07 at the official exchange window.
Meanwhile, in the unofficial black market, the currency experienced a slight dip, weakening by N3 from N1,535 to N1,537 against the dollar.
This appreciation comes as Nigeria’s external reserves climbed to $38.63billion as of Thursday, July 24, 2025, up from $38.37billion earlier in the week. The steady rise in reserves is seen as a sign of growing confidence in the nation’s economic management.
Despite the week’s daily uptick, the naira showed a small week-on-week decline, falling by N2.38 compared to the previous Friday’s exchange rate of N1,532.34.
In a recent assessment, Renaissance Capital Africa highlighted that the naira remains overvalued by about 26% compared to its 25-year real effective exchange rate average, suggesting that there could be further adjustments in the future to bring the naira in line with its historical valuation.
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