The Nigerian naira remained stable on Tuesday at the official foreign exchange (FX) market, closing slightly stronger against the dollar. Data from the Central Bank of Nigeria (CBN) showed a marginal appreciation of N5.53, with the naira settling at N1,598.95 from N1,604.48 on Monday, marking a 0.4 percent gain. Currency dealers observed the highest dollar rate at N1,605, which was lower than the N1,630 recorded the previous day. The market also saw a slight improvement in the lowest rate, which dropped to N1,590 from N1,593.
The parallel market, or black market, mirrored the trend, with the naira appreciating by N3 to N1,613 from the previous rate of N1,610. This shift signals a gradual stabilization in the naira’s value against the dollar. The Central Bank’s intervention and the overall improvement in market liquidity were key factors driving these gains.
In terms of foreign exchange inflows, the Nigerian Autonomous Foreign Exchange Market (NAFEM) recorded an influx of US$847 million, up from US$795 million the previous week. The data shows that foreign portfolio investors (FPIs) accounted for the largest share of the inflows at 32.26 percent, followed by non-bank corporates at 22.0 percent. The CBN contributed 22.87 percent of the total inflows, reflecting a steady participation by government institutions in stabilizing the FX market.
While the naira showed some improvements this week, the broader trends in the FX market remain mixed. Last week, the official spot market saw a 2.35 percent decline against the dollar, with forward rates suggesting a more cautious outlook for the near future. Despite a slight drop in the gross foreign reserves, which decreased by 0.32 percent to US$38.03 billion, the Naira’s margina
Source: Business day