MARKET NEWS

The naira on Monday depreciated slightly against the dollar in the official foreign (FX) market, following a decline in liquidity.

The Nigerian Foreign Exchange Market (NFEM) recorded an inflow of US$668mn last week, marking a 9 percent decline compared to US$735mn in the previous week, according to data from the research department of Coronation Merchant Bank Limited.

After trading on Monday, the naira weakened by 0.2 percent as the dollar was quoted at N1,605.62 compared to N1,602.18 quoted on Friday last week at the NFEM, data from the Central Bank of Nigeria (CBN) indicated.

The naira appreciated to N1,600 on Monday, gaining N5 from N1,605 traded on Friday in the parallel market, also known as the black market.

According to the report, the CBN accounted for 27.73 percent of the total inflow, Foreign Portfolio Investors (FPIs) 9.22 percent, non-bank corporates 33.43 percent, exporters 24.34 percent, while other sources accounted for 5.28 percent. The gross foreign reserves increased by 0.36 percent week/week to close at US$37.93bn as of April 30, 2025. Turning to the Chinese Yuan, the Naira lost 0.40% against the Chinese Yuan (CNY), to close at N220.31CNY/N.

Last week, Naira lost 0.17 percent w/w against the US Dollar in the official spot market, closing at N1,602.18/US$1. The 1-month forward rate closed at N1,646.57/US$1. The 3-month forward contract rate closed at N1,724.19/US$1. The 6-month forward contract closed at N1,837.00/US$1 The 1-year forward rate closed at N2,056.24/US$1. At the parallel market, the value of Naira remained the same as the previous week, closing at N1,610.00/US$1 on Friday