The foreign exchange market recorded a stronger performance for the naira across key trading windows during the week ended August 29,2025.
At the official Nigerian Autonomous Foreign Exchange Market (NAFEM) window, the local currency appreciated by 0.23% on a week-on-week basis, closing at N1, 531.57/$1, supported by improved market liquidity and sustained dollar inflows.
Similarly, the parallel market reflected a marginal gain, with the naira strengthening by 0.37% week-on-week to settle at an average of N1, 538.33/$1. This parallel market uptick highlights renewed confidence among traders, as well as moderated speculative pressures within the informal segment.
Crude oil prices are on track for another weekly gain, supported by U.S. tariffs on Indian exports, India’s rising purchases of Russian crude, and Ukrainian drone strikes on Russian refineries.
At the time of writing, Brent traded at $68.17 per barrel and WTI at $64.20 per barrel, both marginally lower than the previous close as U.S. summer fuel demand tapers off. In contrast, Nigeria’s Bonny Light crude declined by 2.53% to close at $69.44 per barrel.
On the macroeconomic front, the country’s foreign reserves rose by 0.32% week-on-week to $41.24 billion from $41.11 billion, driven by stronger foreign inflows.
In the coming week, the naira is expected to trade largely stable at the official window, supported by CBN interventions and modest FX inflows, though rising demand and a stronger U.S. dollar could limit further gains. Parallel market rates should see modest appreciations barring speculative pressures or liquidity tightening.
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