The Naira recorded a mild depreciation of 0.3 percent against the US dollar in July, closing at One thousand five hundred and thirty-three naira, fifty-five kobo at the official foreign exchange market following a small decline of N3 Naira 98 Kobo from the One thousand five hundred and twenty-nine naira, fifty-seven kobo rate that opened the month.
Despite this slight drop, market activity remained largely stable, with marginal day-to-day fluctuations.
Meanwhile, Nigeria’s external reserves rose by 2.16 billion dollars during the month, reaching 39.35 billion dollars by July 30 while the 5.8 percent increase from the previous 37.19 billion dollars was driven by stronger FX inflows, supported by improved oil earnings, higher diaspora remittances, and renewed foreign portfolio investments.
Trading activity in the parallel market saw the naira hold steady at N1,560 to the dollar over the month. However, on the final day of July, the currency dipped by 0.6 percent, losing N10 compared to the previous day’s close at One thousand five hundred and fifty naira.
A forecast by United Capital Research suggests the naira could appreciate slightly in the coming months, possibly ending the year within the N1,490 to N1,520 range.
