Dollar Inflows Surge: Experts Tip Naira for Stability as Nigeria’s Reserves Soar
- The Nigerian currency is poised to continue its upward climb as the country’s reserves rise
- Several experts have predicted a stable future for the naira, pointing to robust policies of the Central Bank of Nigeria (CBN)
- Experts say rising reserves and fresh portfolio investments will anchor the naira’s long-term stability
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Financial experts and analysts have hailed the current naira stability amid rising inflows and buoyant reserves.
They believe the naira will remain largely stable, supported by strong forex liquidity and a more efficient FX market.
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The naira stands strong against the USD
Industry and market watchers explain that sustained inflows from foreign portfolio investors, stronger non-oil exports, and limited incentives for naira speculation will drive the local currency’s stability.
Legit.ng previously reported that the local currency firmed up against the dollar, appreciating by 0.23% to close at N1,531 per dollar.
The naira also rallied in the parallel market, gaining 0.97% weekly to settle at N1,54O per dollar.
CBN’s policies: Experts predict long-term gain
The naira’s recent rebound has been driven by the Central Bank of Nigeria’s (CBN) intervention of $50 million in the foreign exchange market, followed by FPI inflows driven by the OMO auction.
BusinessDay quotes the president of the Association of Bureaux de Change Operators of Nigeria (ABCON), Aminu Gwadabe, as saying that stronger forex inflows into the economy will sustain the naira’s long-term stability.
The ABCON boss stressed that the CBN has been cultivating multiple FX sources to boost dollar inflows and ensure wider access to manufacturers and retail users.
Dollar inflows: Reserves gain in August
Amid the increased inflows, the National Bureau of Statistics said that capital inflows into the economy hit $5.6 billion in Q1 2025.
According to the NBS data, the banking sector accounted for $3.1 billion, representing 55.44% of total inflows.
Experts at Cordros Securities predicted the naira’s stability, highlighting that gross FX reserves rose to their peak since December 2021, rising by $353.47 million weekly to $41.08 billion on August 21, before hitting $41.10 billion on August 22.
Policies anchored on inflows
CBN’s data showed that reserves reached $42.72 billion on August 13 due to rising inflows and a marginal rise in crude output.
The gross reserves rose from $39.3 billion on August 1, $39.5 billion on August 6, reaching $40.2 billion on August 8, 2025.
Source: Getty Images
Experts say the sustained reserve gain and reduced inflation, and steady currency show the positive outcomes of the government’s policy.
Naira strengthens across FX markets
Legit.ng earlier reported that the naira appreciated in all forex markets following continued accretion in external reserves.
Investors' confidence was bolstered as the nation’s external reserves gained $1.7 billion in August, according to the latest data from the Central Bank of Nigeria (CBN).
The CBN data showed that the external reserves rose to $41.27 billion in the review period, as Olayemi Cardoso, CBN governor, said foreign remittances averaged $600 million in August.
Source: Legit.ng
