Massive Boost For Naira as Dollar Inflows Into Nigerian FX Market Rises By Over 64 Per Cent
- There is hope for the Nigerian currency following the upsurge in dollar inflows into the Nigerian foreign exchange market
- Data shows that the FX market experienced improved liquidity as inflows rose by 64.24% at $841.10 million
- The inflows propelled the naira in the official market, leading to a gain of 0.69% per week to close at N1,446.74 per dollar
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The naira received a major boost following a sharp rise in US dollar inflows into Nigeria’s foreign exchange market.
New data shows FX inflows surged by 64.24% to $841.10 million, improving liquidity and enabling fresh interventions from the Central Bank of Nigeria (CBN).
Source: Getty Images
Coronation Merchant Bank confirmed the increase, noting it was up from $512.20 million the previous week.
The CBN accounted for the largest share of inflows at 33.42% ($281.10 million), followed by non-bank corporates (23.07%), Foreign Portfolio Investors (19.38%), individuals (5.45%), and others (2.01%).
Stronger FX inflows also helped push Nigeria’s external reserves up to $44.6 billion, according to Market Forces Africa.
Naira shows mixed signals across Markets
At the Nigerian Foreign Exchange Market (NFEM), the naira appreciated by 0.69%, closing at N1,446.74/$.
However, the parallel market weakened by 0.34% to N1,470/$, widening the gap between both markets to N23.26 from N8.28 the previous week.
Experts expect the exchange rate to hover around N1,500/$, supported by improved liquidity and continued CBN interventions.
Experts are upbeat about the naira ending 2025 strongly, stating that the robust reserves and inflows are a cushion against external and domestic shocks.
They disclose that renewed investor appetite in the Nigerian currency market will catalyze the market.
Other analysts say that investors are adopting a cautious approach due escalating insecurity in Nigeria and lack of economic directions by the Nigerian government for the 2026 fiscal year.
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Despite the uptick, both grades remain down year-to-date due to market volatility and shifting supply dynamics.
Naira begins December strongly against USD
Legit.ng earlier reported that The naira began December on a positive note, extending the upward momentum built in recent weeks at the official foreign exchange window.
The currency closed the week at N1,446.74 per dollar, appreciating by 0.69% from the previous week’s close of N1,456.72 after a period of sharp volatility driven by mixed market sentiments.
This came after a period of sharp volatility triggered by fluctuating market sentiments and pressures at both ends of the FX market.
Source: Legit.ng
