The naira consolidated its gains against the US dollar in the foreign exchange market on Tuesday, July 1, 2025.

The local currency appreciated against the US greenback amid reduced demand pressures.

At the Nigerian Foreign Exchange Market (NFEM), the naira closed trading at N1,537 per dollar, from N1,532 the previous day.

Currently, dollar supply volumes remain enough to cover forex demand in the official foreign exchange market.

The development has kept the naira’s exchange rate against the dollar stable, supported by foreign investors’ confidence, exporters’ inflows and the Central Bank of Nigeria’s interventions.

Data from the CBN showed that the naira’s value appreciated from N1,532 to N1,527 per dollar in the official FX market.

Transactions ended at an intraday low of N1,521 and a high of N1,531, before closing at N1,527 per dollar.

Official vs black market: Can CBN unify them?

According to the CBN, the NFEM rate is a volume-weighted average and stands as the official exchange rate for the day.

The naira remained unchanged in the parallel market at N1,565 per dollar. Consequently, the gap between the official and parallel markets settled at N31 as the apex bank still seeks FX convergence, naira stability, and liquidity sufficiency.

Oil prices inch high slightly

Market Forces Africa reports that in the global commodity market, oil prices rose slightly on Tuesday, July 1, 2025, as investors considered encouraging demand signals while remaining wary ahead of the OPEC+ meeting to set August production levels.

Reports say Brent Crude increased by 37 cents or 0.6% to settle at $67.11 a barrel, while WTI gained 34 cents to settle at $65.45 per barrel.

Gold prices rose one per cent as investors turned to buffer assets following the US Senate’s passing of President Donald Trump’s bill ahead of the July 9 trade tariff deadline.

In the second quarter, investment company Partian said that commodity price volatility in the second quarter was worsened by geopolitical tensions.

The 12-day Middle East war between Israel and Iran, caused by strikes on Iran’s nuclear sites in mid-June, sent oil prices soaring above $81 a barrel within days.

Oil price increase brings windfall

The price increase provided a windfall for oil-exporting Sub-Saharan African countries but also strained oil importers with higher energy costs.

However, by the end of June, Brent Crude had dropped to about $65 per barrel.

The price spike dropped as OPEC+ signaled modest production increases and US shale production reached new highs.