The Nigerian naira continued its bullish momentum in the official foreign exchange market this week, driven by a 48% surge in foreign exchange (FX) inflows—a development that has greatly enhanced market liquidity.
Data from Coronation Research showed that total FX inflows into the Nigerian Autonomous Foreign Exchange Market (NAFEM) rose to $914 million, compared to $619 million in the previous week. This represents a week-on-week increase of 47.66%, demonstrating growing investor confidence and improved supply dynamics.
The naira closed the session at N1,584 to the US dollar at the Central Bank of Nigeria (CBN) window and N1,582 on the FMDQ platform, showing signs of stability amid strong market liquidity.
Contributors to the increased FX inflow include the Central Bank of Nigeria, which accounted for 25.41% of the total, foreign portfolio investors (12.53%), non-bank corporates (28.85%), and exporters (20.79%). Other sources made up the remaining 12.42%.
The uptrend in FX supply has bolstered confidence in the official window, helping the naira recover ground lost in previous weeks. Analysts credit the CBN’s steady interventions and reforms as key drivers of this positive momentum.
In addition, the naira appreciated marginally by 0.02% against the Chinese yuan, closing at N221.77. Over the past week, the local currency gained 0.46% against the US dollar in the official spot market, closing at N1,598.72 per dollar—a notable recovery after three consecutive weeks of losses.
Sustained external reserves and specific actions taken by the top bank to rebuild investor confidence in Nigeria’s foreign exchange system are supporting the naira rally.
