Naira closes flat as Cardoso announces $40.1bn external reserves

The naira closed flat on Tuesday in the official foreign exchange (FX) market, as Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN) announced gross external reserves of $40.1 billion.

At the Nigerian Foreign Exchange Market (NFEM), the naira slightly depreciated, with the dollar quoted at N1,535.23, marking a 0.2 percent or N2.69 drop from N1,532.54 recorded the previous day, according to data from the CBN.

In the parallel market, also known as the black market, the local currency closed steady at N1,530, according to street traders on Tuesday.

Cardoso disclosed during a press briefing following the Monetary Policy Committee (MPC) meeting that Nigeria’s gross external reserves rose to $40.11 billion as of July 18, 2025, providing about 9.5 months of import cover for goods. However, figures on the CBN’s website indicate the gross reserves stood at $37.93 billion on July 18, 2025, and increased to $38.24 billion by Monday.

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The MPC also highlighted continued stability in the FX market, driven by stronger capital inflows, improved earnings from crude oil production, rising non-oil exports, and a notable drop in aggregate imports.

According to a report from Access Bank’s research department, the FX market witnessed active trading last week, with increased demand-side participation leading to a marginal depreciation of the naira. The currency weakened slightly by N1.64, closing at N1,536.64 per U.S. dollar.

Entering this week, analysts expect the exchange rate to remain relatively stable around current levels in the near term, barring any major changes in market fundamentals.

On Monday, the naira appreciated further in the black market, buoyed by a significant rise in FX inflows, which climbed to $1.31 billion week-on-week, largely driven by renewed interest from foreign portfolio investors (FPIs). This has helped narrow the gap between the official and parallel market rates to just N2 per dollar.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.