Naira exchange rate improves to ₦1,534.21 \$1 at official window as external reserves rise. Analysts call for stronger FX policies amid market volatility

The naira exchange rate began the new week with a marginal improvement at the official foreign exchange window, trading at ₦1,534.21 per US dollar on Monday, July 28, 2025, according to the Central Bank of Nigeria (CBN).

Also read: Naira Gains Against Dollar, Closes Week Slightly Stronger

This represents a 51 kobo gain from the ₦1,534.72 \$1 closing rate on Friday, July 25, signaling cautious optimism in the market.

The appreciation coincides with a slight increase in Nigeria’s external reserves, which rose to \$38.77 billion, up from \$38.63 billion the previous day—an indication of increased foreign inflows and stronger oil export revenues.

However, the story was different in the parallel (black) market, where the naira weakened slightly to ₦1,538 \$1, down from ₦1,537 /$1 on Friday, highlighting ongoing liquidity constraints and speculative demand in the informal FX space.

Market analysts attribute the improvement in reserves to recent policy reforms by the federal government and improved confidence among foreign investors.

They caution, however, that more structural measures are needed to close the gap between the official and unofficial market rates.

The CBN reaffirmed its commitment to stabilizing the foreign exchange environment through targeted interventions aimed at boosting investor confidence, enhancing transparency, and curbing market volatility.

Also read: CBN Retains Monetary Policy Rate to Stabilise Inflation, Naira

As the week progresses, market participants and stakeholders will watch closely for trends in dollar supply, oil prices, and monetary policy shifts, all of which will determine the naira’s medium-term trajectory.