The naira gained strength against the dollar on Thursday, July 3, 2025, trading at N1,565/$1 on the parallel market. This is an improvement from N1,580/$1 on Wednesday, according to a Nairametrics survey in Lagos.
Throughout the week, the naira remained mostly stable. It started the week at N1,575/$1 on Monday, held steady at N1,580/$1 on Tuesday and Wednesday, and appreciated by ₦15 on Thursday.
CBN Exchange Rate Also Improves
Data from the Central Bank of Nigeria (CBN) shows that the naira improved at the official market as well. On Wednesday, it traded at N1,525/$1, slightly stronger than N1,527/$1 recorded on Tuesday.
The CBN data also revealed that intraday trading saw the naira hit a high of N1,532/$1 and a low of N1,524/$1.
The naira also appreciated against the British pound on the parallel market. On Thursday, it traded at N2,170/£1, stronger than N2,175/£1 on Wednesday. Earlier in the week, it traded at N2,180/£1 on Tuesday and N2,195/£1 on Monday.
Against the euro, the naira stayed stable throughout the week. It traded at N1,810/€1 on both Wednesday and Thursday.
IMF Supports CBN’s Monetary Policy
The International Monetary Fund (IMF) has praised the CBN for maintaining a tight monetary policy. In its 2025 Article IV Consultation Report, the IMF said these steps are key to managing inflation and protecting Nigeria’s economy.
The report stated that the CBN’s efforts to bring down inflation are working and should continue until inflation expectations become more stable.
“Directors agreed that the Central Bank of Nigeria is appropriately maintaining a tight monetary policy stance, which should continue until disinflation becomes entrenched,” the IMF said.
CBN Holds Key Interest Rates Steady
At its 300th Monetary Policy Committee (MPC) meeting on May 20, 2025, the CBN kept its Monetary Policy Rate (MPR) at 27.50%. It also maintained the Cash Reserve Ratio (CRR) at 50% for commercial banks and 16% for merchant banks.
These policies aim to limit excess cash in the system, reduce pressure on the naira, and control inflation, which has remained high in recent years.
The IMF also praised the CBN for stopping deficit financing, a move that previously fueled inflation. The Fund welcomed the CBN’s focus on improving governance and building a solid foundation for a more transparent monetary system.
The IMF expects Nigeria’s economy to grow by 3.4% in 2025. This is a slight increase from its earlier forecast of 3% in April, though it is still below the 3.2% projection made in October 2024.
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