Market News

The leap was the strongest attained by the currency since December 2024.

Riding on the back of improved liquidity, the naira rose at the official market last week, climbing by 0.72 per cent (or N10.5) to close at 1,455.17/$, according to data from the Central Bank of Nigeria (CBN).

At the parallel market, the naira strengthened 0.88 per cent to 1,475/$.

The leap was the strongest attained by the currency since December 2024.

Forex market was mixed through the week on a bearish note. Early demand was pressured by the exit of Foreign Portfolio Investors led to a dip.

However, the market was helped midweek by strong foreign inflows, especially from FPIs sourcing naira to meet local fixed-income obligations.

Supported by improved US dollar supply and external reserves, analysts say the naira is likely to remain stable in the near term.

In a review of the FX market, Cowry Assets Management Limited noted that the local currency’s improvement was helped by better foreign exchange inflows, which reduced pressure on demand.

“We expect the naira to stay stable in the near term, supported by steady FX inflows and CBN interventions. However, rising import demand or weaker dollar inflows could slow further gains.

“Oil prices may remain under pressure due to higher supply, but any rebound in global demand could offer some support to Nigeria’s external earnings conditions, underpinning optimism for FX market stability; volatility in global oil markets may keep investor sentiment cautious.”

The external reserves also increased to $42.57bn, helped by higher inflows from oil sales, remittances, and portfolio investments.