Naira Maintains Pressure on Dollar Amid FX Inflows Into The Markets

• The Nigerian currency, the naira, rose in value on Thursday, June 3, 2025, the fifth day in a row, to put further pressure on the dollar
• The new exchange rate comes amid a series of interventions by the Central Bank of Nigeria (CBN) to ease pressure on the local currency
• Also, the apex bank conducted a series of OMO sales in June, which drove FX inflows into the foreign exchange market

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

The Nigerian currency has been on an upward trend for five days in the official foreign exchange market due to a combination of demand and supply favouring the local FX rate.

The Nigerian economy experienced a sharp increase in FX inflow in the second quarter as foreign portfolio investors (FPIs) drove dollar volume in the official market after successive OMO bill sales.

Naira vs dollar: New rate emerges

Data from the Central Bank of Nigeria (CBN) disclosed that on Thursday, July 3, 2025, the Nigerian Foreign Exchange Market (NFEM) settled at N1,525.82 per dollar from N1,526.15 the previous day.

Market players consummate daily transactions in the FX market as dealers quoted the dollar at an intraday low of N1,524.50 per dollar and a high of N1,527.50.

In the parallel segment of the FX market, the naira also surged to N1,578 per dollar, with the exchange rate gap in the market further growing by N52, pressuring speculators.

On Thursday, June 3, 2025, the International Monetary Fund (IMF) praised the forex market reforms for aligning rates and restoring investor confidence.

CBN’s interventions save the naira

The naira reform and the CBN FX interventions have strengthened investors’ confidence, helping to drive hot money into the Nigerian economy. 

In June, CBN relied on open market operations to manage liquidity: a series of OMO bill auctions that absorbed excess naira liquidity.

Foreign investors' FX inflow through eight OMO bill sales helped the naira gain.

The CBN reportedly floated eight OMO auctions in the second quarter of this year, offering about N4.5 trillion across standard tenors.

OMO bill auctions throughout the quarter were about N71.12 trillion despite one no-sale auction being recorded.

Oil prices drop, but naira remains strong

Market Forces Africa reported that oil prices dropped on Thursday, July 3, 2025, as concerns mounted over the US reinstatement of tariffs raised demand pressures, especially ahead of a likely production increase from major producers.

Brent crude dropped 56 cents or 0.81% to close at $65.55 per barrel, while WTI dipped by 70 cents to close at $66,75 amid slim trading due to the Independence Day holiday.

According to reports, gold prices also declined due to pressure from expected US payroll data, which decreased the likelihood of an early Federal Reserve rate cut.

Spot gold dropped 0.9% to $3,328.63 per ounce after falling more than one per cent earlier.

Traders quote dollar at new rate as naira appreciates

Legit.ng earlier reported that the naira consolidated its gains against the US dollar in the foreign exchange market on Tuesday, July 1, 2025.

The local currency appreciated against the US greenback amid reduced demand pressures.

At the Nigerian Foreign Exchange Market (NFEM), the naira closed trading at N1,537 per dollar, from N1,532 the previous day.