Naira Edges Up in Black Market Amidst Tightened FX Controls
The Nigerian Naira saw a slight boost against the United States Dollar in the black market today, July 10, 2025. The parallel market is now quoting the Naira at approximately ₦1,550 for buying and ₦1,560 for selling against the dollar, marking a modest appreciation.
Financial analysts are keenly observing this subtle strengthening, attributing it to a combination of minor foreign exchange inflows and a tempered demand within the unofficial currency market.
This marginal gain in the black market comes on the heels of intensified efforts by Nigerian authorities to stabilize the currency and alleviate foreign exchange pressures. Just days earlier, on July 7, 2025, major Nigerian banks, including Stanbic IBTC and Zenith Bank, drastically cut their monthly spending limits for foreign card transactions. Stanbic IBTC slashed its limit from $1,000 to just $500, with overseas ATM withdrawals now capped at $100. Zenith Bank went even further, suspending all overseas ATM withdrawals and reducing its monthly spending cap to a mere $200. These measures are reportedly designed to mitigate risks associated with foreign currency payments and conserve the nation's dwindling foreign exchange reserves.
External Reserves Under Pressure
Nigeria's external reserves continue to face significant strain, standing at $37.37 billion at the end of June 2025. This represents a notable $3.5 billion drop from $40.88 billion recorded in December 2024. This six-month decline is primarily linked to external debt payments and strategic interventions by the Central Bank of Nigeria (CBN) aimed at shoring up the Naira. The International Monetary Fund (IMF) projects an even further decline in reserves to $36.4 billion by the close of 2025. This forecast considers factors like weaker oil prices, which have fallen from $79.9 per barrel in 2024 to $67.7 in 2025, along with rising imports, substantial refinancing needs, and persistent capital outflows driven by global economic uncertainties.
CBN's Tight Monetary Stance
On the monetary policy front, the CBN has maintained an aggressive tightening stance. It has steadily increased its benchmark interest rate from 18.75% in mid-2023 to 24.75% by April 2025. This assertive approach seeks to rein in persistent inflation, which remained high at 23.7% in April, and to stabilize the Naira in a foreign exchange market that continues to be volatile despite recent reforms. Additionally, the CBN launched the Nigerian Foreign Exchange (FX) Code in January 2025, an initiative designed to enhance ethical standards, transparency, and integrity among authorized dealers in the forex market.
While the black market's marginal appreciation today offers a glimmer of hope, the broader economic context highlights ongoing challenges in managing foreign exchange liquidity and achieving sustained Naira stability. Analysts will remain vigilant, monitoring the interplay of these complex factors to determine the Naira's future trajectory.