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The Nigerian local currency, the naira, appreciated to N1,506 per dollar at the official window even as the nation’s foreign reserves reached $41.500 billion.
This is according to the Nigeria Foreign Exchange Market (NFEM) update released by the Central Bank of Nigeria (CBN), indicating spot rate settled at N1506.8433 per dollar at the official window on the first day of the week.
The appreciation of the naira was also due to the reduced FX pressure in the market, according to analysts.
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The exchange rate appreciated from N1,514.8671 last week due to sufficient US dollar liquidity in the currency market.
Analysts projected that the naira will remain relatively stronger in the local currency amidst broader pressures on U.S dollar index in the global space.
Last week, the Naira appreciated by N16.70 to close at N1,514.87/US$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEM). In the parallel market, the exchange rate remained steady at N1,540.00/US$1.
Total FX inflows settled at US$567.2 million, lower than US$706.7 million recorded in prior week. Foreign Portfolio Investment (FPIs) led with the highest inflows contributing US$184.1 million (32.5%) to the overall inflows.
According to Coronation Merchant Bank research unit, the CBN intervened in the market accounting for US$173.1mn (30.5%).
Meanwhile, inflows from Exporters and Non-bank Corporates contributed 16.6% and 16.2%, respectively, while others accounted for 4.3%.
Gross external reserves climbed to $41.499 billion over sustained inflows across foreign sources including hydrocarbon revenue in spite of price fluctuations in the global commodity market.
Brent crude ended the week down 3.85% last week, closing at US$65.5/bbl compared to US$68.12/bbl in the previous week. This brings the year to date decline to 12.25%, with the 2025 average price at US$69.98/bbl, about 12.37% lower than the 2024 average.
Oil prices had strengthened earlier in the week on supply concerns linked to potential new U.S. sanctions on Iranian shipments and steady Asian buying.
Source: DailyTrust | Read the Full Story…
