Market News

Nigeria’s foreign exchange reserves rose for the ninth consecutive week, strengthening the naira and narrowing the gap between official and parallel market rates.

Data from the Central Bank of Nigeria (CBN) showed reserves closed the weekend at $41.50 billion, up from $41.27 billion in the previous week. The increase of $232 million extended a steady growth trend that has supported market liquidity.

At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira appreciated by 1.0 per cent to N1,520 per dollar, while it traded at N1,535 per dollar in the parallel market. The N15 difference between both markets reflects what analysts described as a sign of stability in supply and demand conditions.

Market watchers attributed the improvement to sustained foreign portfolio inflows and interventions by the CBN. Analysts at Cordros Capital noted that trading activity was supported by offshore investor participation alongside a $15 million injection by the apex bank.

In a note to investors, Financial Derivatives Company Limited, led by Bismarck Rewane, said rising oil prices and new inflow channels introduced by the CBN have also contributed to the upward trend in reserves.

Cordros Capital added that stronger non-oil export receipts and reduced speculative activity in the naira are helping to consolidate gains in the foreign exchange market.

Figures from the National Bureau of Statistics showed that forex inflows in 2024 stood at $2.51 billion. Analysts indicated that inflows in the current year are on track to surpass that level if the momentum continues.