The naira recorded further gains across official and parallel markets last week, buoyed by sustained foreign exchange inflows and improving liquidity conditions.
Riding on strong dollar supply and renewed investor confidence, the naira appreciated at the official market, gaining 0.72 per cent (or N10.50) to close at N1,455.17 per dollar, according to data from the Central Bank of Nigeria (CBN).
At the parallel market, the local currency also strengthened by 0.88 per cent to trade around N1,475 per dollar, marking its best weekly performance since December 2024.
The improved showing followed a surge in forex inflows from oil receipts, remittances, and foreign portfolio investors meeting local obligations in the fixed-income market. Analysts said the development eased pressure on dollar demand and lifted market sentiment.
Strong Inflows, Stable Outlook
Market activity was mixed for most of the week, with initial selling pressure caused by portfolio outflows. However, midweek liquidity from offshore investors reversed the trend, helping the naira consolidate its position.
Financial analysts at Cowry Assets Management Limited observed that the recent appreciation was largely driven by stronger FX supply and the Central Bank’s steady interventions.
They added that the outlook for the naira remains stable in the near term, supported by continued foreign inflows and firming external reserves.
The country’s external reserves rose to $42.57 billion, reflecting higher earnings from oil exports, diaspora remittances, and portfolio investments.
Analysts also cautioned that sustained import demand or weaker inflows could slow the currency’s momentum in the coming weeks.
Oil prices, they noted, may face downward pressure from increased global supply, though a rebound in demand could support Nigeria’s external earnings and help maintain FX market stability.
The CBN has continued to assure the market of its readiness to sustain interventions aimed at deepening liquidity and strengthening the naira’s position against major currencies.
FG Will Keep Borrowing Despite 411% Revenue Surge – FIRS Boss
Discover more from RainSMediaRadio
Subscribe to get the latest posts sent to your email.
Okuduğunuz her eserler profesyonel ve zamanla değer kazanacak.