The naira appreciated by 0.8% against the US dollar at the official foreign exchange market on Tuesday, despite a decline in weekly dollar inflows.
Data from the Central Bank of Nigeria (CBN) showed the naira closed at N1,540.04 per dollar, gaining N13.07 from Thursday’s rate of N1,553.11 — the last trading day before the two-day public holiday.
In the parallel market, however, the naira traded flat, closing at N1,607 per dollar — a marginal depreciation from N1,605 before the holiday.
Total inflows into the Nigerian Foreign Exchange Market (NFEM) dropped to $780 million last week, down from $1.04 billion the previous week. Exporters contributed 18.83% of the total, the CBN accounted for 19.78%, foreign portfolio investors (FPIs) led with 32.47%, non-bank corporates brought in 27.60%, while other sources made up 1.32%.
Despite the lower inflows, investor sentiment remained positive, driven largely by steady capital market activity and improving confidence in the FX reforms.
CBN data also showed that Nigeria’s gross external reserves stood at $38.33 billion as of June 5, 2025, down by $120.97 million or 0.31%.
The naira had ended the previous week — shortened by holidays — with its strongest performance since December 2024, gaining 2.13% week-on-week to close at N1,553.12 at the official market. Similarly, the black market recorded a 2.13% gain to close at N1,585 per dollar.
In the forward market, the naira also showed stability:
1-month forward rate closed at N1,606.00
3-month at N1,675.50
6-month at N1,776.30
1-year forward settled at N1,977.47
The continued appreciation, even amid reduced inflows, signals sustained optimism and resilience in the currency market, particularly as FPIs remain active.
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