Market News

Although the naira weakened slightly at the official market last week, analysts at Coronation Merchant Bank have said that they expect healthy autonomous Foreign Exchange (Fx) and Foreign Portfolio Investment (FPI) inflows to help keep the local currency broadly stable in the near term.

The analysts, who made the prediction in a report sent to New Telegraph, noted that although there were no FX inflows from the CBN for the sixth consecutive week, inflows from autonomous sources ensured that there was liquidity in the forex market last week.

The report said: “The naira weakened marginally at the Nigerian Foreign Exchange Market (NFEM) window during the week (last week), depreciating by 0.48 per cent w/w to close at N1,370.46/$1, compared with N1,363.83/$1 in the preceding week.

“The local currency commenced the week on a positive note, appreciating by 0.56% to N1,356.27/$1, before reversing earlier gains amid relatively weaker FX supply conditions. In the parallel market, the naira strengthened by 0.36 per cent w/w to N1,400.00/$1 from N1,405.00/$1 recorded in the previous week.

Consequently, the parallel market premium narrowed to 2.16 per cent, down from 3.02 per cent a week earlier, reflecting improved price convergence across market segments.

“Total FX inflows into the market amounted to $689.00 million during the week, declining by 26.04% w/w with exporters accounting for the largest share at 43.30% ($298.30m), followed by foreign portfolio investors (FPIs) at 39.26% ($270.50m).

Non-bank corporates contributed 14.36% ($98.90m), while other corporates accounted for 1.87% ($12.90m), with other sources contributing the remaining 1.21%.”

It further stated: “Notably, there were no FX inflows from the CBN for the sixth consecutive week, underscoring the increasing role of autonomous sources in supporting market liquidity.

“On the external front, Nigeria’s gross foreign exchange reserves increased by 1.05% w/w ($529.71m) to $51.04bn as of June 18, 2026, providing continued support for external buffers. Looking ahead, we expect the naira to remain broadly stable in the near term, underpinned by robust autonomous FX inflows and portfolio inflows.”