On a quiet Tuesday morning, as July opened its books, the naira stirred with a glimmer of strength.
Traders across Nigeria’s foreign exchange markets watched as the currency edged upward against the dollar—a modest yet telling sign of resilience.
At the Nigerian Foreign Exchange Market (NFEM), the currency gained 14 kobo to close at ₦1,529.57 per dollar, improving on Monday’s ₦1,529.71, according to the Central Bank of Nigeria (CBN).
Meanwhile, in the parallel market, traders pushed the naira up by ₦10 to ₦1,560—a 0.6% increase.
Stronger Dollar Inflows Support Naira
This appreciation followed a surge in dollar inflows from Foreign Portfolio Investors (FPIs), who boosted market liquidity through stronger sell-side activity.
Last week, Access Bank reported that the naira climbed ₦6.43, closing at ₦1,545.20 per dollar.
Looking ahead, analysts at Access Bank believe sustained FPI inflows will likely keep exchange rates under downward pressure—if capital momentum continues.
Naira In July
Despite these recent gains, the naira still faces the shadow of its 2024 performance.
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Last year, it posted Africa’s steepest currency loss, plunging 131.8% from ₦636.13 to ₦1,474.60 per dollar.
The Central Bank of Nigeria drove this shift by implementing exchange rate unification and pushing to attract foreign investment amid FX shortages and high inflation.
Wider Continental Depreciation Trends
Similarly, South Sudan’s pound tumbled 131.1%, and Zimbabwe’s currency slid 55.6% as both countries grappled with conflict, inflation, and policy instability.
Moreover, currencies in Malawi (−53.7%), Ethiopia (−51.7%), Egypt (−47.9%), and Ghana (−28.6%) also weakened under economic and fiscal strain.
Angola and Zambia reported losses of 27% and 29.4%, respectively.
In contrast, the naira’s recent rally signals tentative progress—offering a rare bright spot in Africa’s volatile FX landscape.