The Naira ended the week on a stronger note in the parallel market, closing at N1,520/$1, its best performance of the week and ₦14 stronger than the official Central Bank of Nigeria (CBN) rate of N1,534/$1 as at Thursday’s close.
This appreciation continued a trend observed through the week as the currency improved from N1,550/$1 on Tuesday to N1,530/$1 on Wednesday, then **N1,535/$1 on Thursday, before settling at *N1,520/$1 on Friday.
In the official market, the naira remained stable, closing Thursday at *N1,534/$1, compared to *N1,537/$1 on Wednesday and N1,536/$1 on Tuesday.
Foreign reserves rise to $38.45 billion
Nigeria’s foreign reserves also grew from $37.78 billion to $38.45 billion, a 1.77% increase week-on-week, boosting the Central Bank’s ability to defend the naira and support external obligations.
CBN Governor speaks on market confidence
Speaking after the 301st Monetary Policy Committee (MPC) meeting in Abuja on July 22, 2025, CBN Governor Olayemi Cardoso noted the improved market performance.
“The MPC also notes the sustained stability in the foreign exchange market, accentuated by improved capital flows, earnings from increased crude oil production, rising non-oil exports, and significant investments,” Cardoso said.
“And very importantly, Nigerians are having greater confidence in their own currency,” he added.
“The foreign exchange market is working a lot better and more smoothly – the result of which has encouraged inflows into that market,” Cardoso explained.
“Of course, reference is always being made to the fact that Nigeria has moved away from the very difficult situation where there were subsidies,” he added.
“These measures, painful though they may be, have resulted in stability in the foreign exchange market. There is positivity in our trade surplus, and it has restored investor confidence,” he concluded.MPC retains key rates
At the same meeting, the MPC voted unanimously to maintain the Monetary Policy Rate (MPR) at 27.5%, citing ongoing inflationary pressures and exchange rate volatility. Other decisions include:
• Asymmetric corridor around MPR retained at +500/-100 basis points
• Cash Reserve Ratio (CRR)* held at 50% for Deposit Money Banks and 16% for Merchant Banks • Liquidity Ratio unchanged at 30%