Lagos, Nigeria | July 5, 2025 – The Nigerian naira is on the cusp of breaking the critical ₦1,500/$ resistance level, trading at ₦1,528/$ in the official market Friday, buoyed by renewed confidence in Nigeria’s monetary policies and the resumption of international transactions on naira debit cards.
Key Developments Driving Naira’s Rally
Banks Reopen International Spending:
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GTBank, UBA, Wema Bank, and Stanbic IBTC now allow naira cards for global transactions.
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Spending limits: $1,000 quarterly for online/POS, $500 for ATM withdrawals abroad.
IMF Endorses CBN’s Tight Monetary Policy:
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Praised 27.5% MPR hold and 50% CRR as “necessary” to curb inflation.
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Supported CBN’s halt to fiscal deficit monetization, a key inflation driver.
Dollar Weakness Globally:
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Dollar Index dipped to 96.605 amid US tariff tensions.
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EUR/USD rose 0.5% weekly despite weak German industrial data.
Why This Matters
Consumer Relief: Nigerians can now use naira cards for Netflix, Amazon, travel bookings—reducing reliance on parallel market dollars.
Investor Confidence: IMF backing signals policy credibility, attracting foreign inflows.
Inflation Fight: Tighter liquidity (via high CRR) helps stabilize prices.
What’s Next?
₦1,500/$ Break? If momentum holds, the naira could test this psychological barrier next week.
More Banks to Follow: Access, Zenith expected to reopen international naira card usage.
CBN Watch: Will monitor FX demand surge from card reactivations.
