Naira’s Depreciation: Dollar Inflows in Forex Market Rise Marginally Amid CBN Interventions
- Foreign exchange inflows into the Nigerian FX markets saw a marginal increase on Wednesday, December 10, 2025
- Analysts at Coronation Merchant Bank disclosed that the Nigerian FX market experienced inflows of about $844m
- The figure is a slight increase from the $841.10 million seen in the previous week, as the naira faced renewed turbulence
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Dollar inflows into Nigeria’s foreign exchange market improved only slightly last week despite the ongoing pressure on the naira.
New data from Coronation Merchant Bank shows that the Nigerian Foreign Exchange Market recorded inflows of $844.70 million, a mild increase from the $841.10 million seen a week earlier.
Source: Getty Images
Corporates lead FX supply as portfolio flows shrink
The new figure also trails the stronger performance of about 1.4 billion dollars reported in October, a reminder of how tight liquidity has become as the year winds down.
Rising demand for international payments and cautious investor behaviour have added more strain to the market.
One of the biggest shifts in the current FX landscape is the changing composition of inflows.
Corporations outside the banking sector supplied the largest share at 25.52%, amounting to 215.60 million dollars.
This position was previously dominated by foreign portfolio investors, who have been reducing their exposure as they rebalance their books for the end of the year.
Individuals followed with 18.38%, while exporters contributed 18.15%. The Central Bank of Nigeria accounted for 16.79% of inflows through its intervention sales.
Foreign portfolio investors were responsible for 16.48%, showing how their participation has weakened compared to earlier months. Other sources made up just above one per cent.
CBN interventions shape market liquidity
The central bank has remained heavily involved in the market, using special FX sales and payment adjustments to stabilise supply.
Data from the bank shows that blocked dollar obligations now stand at 1.22% of gross external reserves, down from 1.31% last month.
Nigeria’s gross external reserves have risen to 45.11 billion dollars, helped by stronger inflows.
According to a report by Market Forces Africa, the increase offers some support for the naira, though analysts note that tight conditions persist across the financial system as many investors trim positions due to uncertainty.
Commodity price movements add to market caution
Activity in the global commodities market also influenced sentiment. Oil prices slipped after Iraq restored supplies from an oilfield that contributes a small but notable portion of global output. Brent crude dropped to 62.44 dollars per barrel, while WTI fell to 58.81 dollars.
Gold also cooled slightly as traders waited for signals from the United States Federal Reserve.
Spot gold dipped to 4,187.10 dollars per ounce, and US gold futures settled lower at 4,213.15 dollars..
Source: Getty Images
The combination of softer oil prices and investors bracing for a US rate decision added another layer of caution to Nigeria’s FX market outlook.
Outlook: Exchange rate expected to hold below N1,500
Analysts at Coronation expect the exchange rate to remain below the N1,500 mark in the near term, supported by stable liquidity and continued intervention from the central bank.
With global markets reacting to expectations of US rate cuts and domestic supply still fragile, the coming weeks will determine whether the naira can stabilise or face fresh volatility.
External reserves cross $45bn, first time since 2019
Legit.ng earlier reported that Nigeria’s external reserves have climbed to $45.04 billion, their strongest point since July 23, 2019.
The latest update from the Central Bank of Nigeria shows a steady improvement in the country’s foreign asset position, with nearly $5 billion added in just a few months.
That growth stands out at a time when several developing economies are struggling to protect their FX buffers.
Source: Legit.ng
