The Nigerian naira showed mixed signals on Tuesday, August 12, 2025, depreciating in the official market but edging up higher in the parallel market.
The naira edged lower against the US dollar at the Nigerian Foreign Exchange Market (NFEM), with the NFEM rate closing at ₦1,535.92/$ on Monday, down from a rate of ₦1,533.56/$.
According to Central Bank of Nigeria (CBN) data, the naira has traded within a relatively tight band of ₦1,538.45/$ – ₦1,526/$ since the start of August, suggesting overall market stability despite mild fluctuations.
Last week, the CBN injected $150 million into the market via authorised dealer banks to ease dollar shortages.
This improved liquidity impacted parallel market rates, with Bureau De Change operators reporting a ₦10 appreciation, early Tuesday morning:
- Sell rate: ₦1,540/$ (from ₦1,550/$)
- Buy rate: ₦1,560/$ (from ₦1,570/$)
Nigeria’s gross external reserves rose $800.51 million week-on-week to reach $40.16 billion, per CBN data, the first time since January that the reserves have surpassed the $40 billion threshold.
U.S. Dollar
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, remained flat near 98.50, as traders await key US CPI inflation data for July and comments from Federal Reserve officials, including Thomas Barkin and Jeffrey Schmid.
Markets currently price in a higher probability of Fed rate cuts following weaker US jobs and PMI data.
Forecasts point to a 2.8% YoY rise in headline CPI and 3.0% YoY in core CPI. A softer-than-expected reading could push the dollar lower and strengthen emerging market currencies like the naira.
