Naira Rebounds in Official Window, Stabilises in the Parallel Market

• The Nigerian currency, the naira, rebounded in the official foreign exchange market after days of volatility
• The local currency appreciated, rising by 26 basis points to close at N1,547 per dollar from N1,551
• However, the naira fell by 32 basis points in the parallel segment of the foreign exchange market to close at N1,584 to the dollar

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade. 

The Nigerian currency, the naira, rose against the US dollar in the official Nigerian Foreign Exchange Market (NFEM) on Friday, June 20, 2025.

The official exchange rate closed at N1,547 per dollar at NFEM, from N1,551.85 it traded the previous day.

CBN intervenes as the naira gains

The naira experienced renewed volatility in the FX market in the past week, stabilising at N1,551 between Wednesday and Thursday.

Analysts say the development was due to the declining foreign exchange reserves, which dipped below $38 billion.

A prior report by Legit.ng showed that the Central Bank of Nigeria (CBN) injected about $41 million into the forex market to stabilise the local currency.

Meanwhile, on Friday, June 20, 2025, the local currency appreciated in the official window by 26 basis points to close at N1,547.363 per dollar, while the naira fell in the parallel market, depreciating by 32 basis points to settle at N1,584 per dollar.

Investors pump dollars into the FX markets

Market Forces Africa said foreign exchange inflows strengthened with the CBN’s intervention and Foreign Portfolio Investors (FPIs) participation.

According to analysts at Cordros Capital Limited, the exchange rate was supported by increased supply from FPIs who were looking to participate in the OMO auction.

Additionally, the apex bank injected $61 million into the banks this week.

However, Nigeria’s gross FX reserves fell for the fourth week in a row, declining by $219.56 million weekly to $37.71 billion.

Reports say that in the forward market, the naira performed mixed across contracts, showing divergence in investors’ confidence in the exchange rate outlook.

Rainy days are ahead for the naira

One-month FX forward contract appreciated by +0.2% to N1,579.78 per dollar, 3-month contract rose by +0.4% to N1,636.90 per dollar.  But the FX contract with a one-year tenor depreciated by -0.9% to N1,904.50 per dollar while the 6-month contract closed flat.

Experts say that despite the naira’s stability, persistent global pressures such as geopolitical tensions in the Middle East remain a downside risk.

They say they expect the CBN to manage short-term volatility via interventions during times of market shocks.

CBN releases new dollar rates for imported products

Legit.ng earlier reported that the Central Bank of Nigeria (CBN) has adjusted the exchange rate for cargo clearance at Nigeria’s sea and airports.

The CBN slightly adjusted the rates from N1,548.85 per dollar as of Sunday, June 15, 2025, to N1,548.919.

The apex bank is responsible for fixing the Customs rates in line with the prevailing official foreign exchange rates.

Source: Legit.ng