FX Inflows From Oil Companies, Exporters Boost Naira’s Gain Amid External Reserves Rise
- The Nigerian naira maintained its positive outlook in the foreign exchange market on Thursday, August 14, 2025
- The naira appreciated, as analysts say it has stabilised recently, despite a tepid intervention by the Central Bank of Nigeria
- Amid the currency gain, the country’s external reserves grew by $70 million over the week, which solidified investors’ confidence
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian currency has continued to appreciate in the official foreign exchange market, as forex inflows from critical sources raised the supply side.
The development also came as Nigeria’s external reserves rose by $70 million to $40.654 billion this week, boosting investor confidence.
Source: Getty Images
Dollar flows from several sources
Experts say the exchange rate has been stabilised, showing corporate and foreign investors’ confidence in the country’s FX market.
According to a report by Market Forces Africa, the dollar turnover has been supported by forex inflows from portfolio investors (FPIs) who bet on Nigeria’s OMO bills and exporters’ contributions, including the latest foreign currency streams from international oil companies (IOCs).
According to data from the Central Bank of Nigeria (CBN), Nigeria’s official FX rate closed at N1,534.52 per dollar on Thursday, August 14, 2025, from the previous day's rate, as pressures slowed, despite the absence of FX interventions from the apex bank.
The naira records gains
Reports say transactions at the FX market ranged from N1,533.50 for the intra-day low and a high of N1,535.50.
The naira appreciated by 10 basis points to close at N1,534 per dollar.
CBN data also showed that Nigeria’s gross FX reserves rose to $40.654 billion, representing an increase of $70 million.
Analysts expect rates to moderate around a similar level amid growing external reserves.
Crude and commodity prices fluctuate
The naira’s performance came as global crude benchmarks rose after the US President, Donald Trump, warned of consequences if talks with Vladimir Putin on Ukraine fail.
Expectations grew that a US interest rate cut in September could raise oil demand.
Data showed that Brent crude rose 131 cents to sell at $66.94 per barrel, while WTI rose by 134 cents to $63.99 per barrel.
Meanwhile, gold dropped in value as the US inflation data and a drop in jobless claims spiked the dollar price and Treasury yields trimmed a September rate cut.
Spot gold dipped by 0.53% to $3,338.62 per ounce, while U.S. gold futures closed $26.82 lower at $3,385.10.
Source: Getty Images
Analysts say Commodity prices may sell mixed on Saturday, August 16, 2025, supported by oil prices caused by geopolitical tensions.
Naira nears equal exchange rate
Legit.ng earlier reported that the naira’s depreciation against the US dollar in the Nigerian Foreign Exchange Market (NFEM) has led to the convergence of official and parallel market rates.
Data from the Central Bank of Nigeria (CBN) shows that on Thursday, July 17, 2025, the gap between the official and black market windows settled at less than N2.
The development comes as the naira closed trading on Thursday, July 17, 2025, at N1,533.11 per dollar in the official market, with an intraday high reaching N1,538 and an intraday low at N1,520 before closing at N1,536 per dollar.
Source: Legit.ng
