LAGOS, Nigeria – The Nigerian naira experienced an appreciation in the official foreign exchange (FX) market on Monday, bolstered by the Central Bank of Nigeria (CBN) contributing nearly 40% of the total dollar inflows.
Data from Coronation Merchant Bank reveals that the Nigerian Foreign Exchange Market (NFEM) recorded a total inflow of $1.19 billion last week, up from $1.10 billion the previous week. Notably, the CBN accounted for 39.85% of this inflow, significantly higher than the 14.29% recorded the week prior.
Other contributors to the dollar inflows included foreign portfolio investments (FPIs) at 18.09%, non-bank corporates at 23.81%, exporters at 15.67%, and other sources accounting for 2.58%.
In the official NFEM window, authorized currency dealers quoted the dollar at a high of N1,537 on Monday, a slight improvement from N1,540 on Friday. The market’s lowest rate on Monday was N1,527 per dollar, also stronger than Friday’s N1,535.
The naira also strengthened in the parallel market (black market), closing between N1,570 and N1,575, compared to N1,580 last week.
Against other major currencies, the naira saw gains:
- Appreciated by 0.7% against the pound, closing at N2,020, a N15 increase from N2,035 on Thursday (black market).
- Gained N10 against the euro, closing at N1,700, compared to N1,710 on Thursday.
- Traded steadily against the Canadian dollar and Chinese yuan at N1,150 and N215, respectively.
Despite these gains, last week saw the naira depreciate by 0.32% in the parallel market, closing at N1,590.00/$1 on Friday, March 21, 2025, according to Coronation’s report.
CBN data also indicated a slight decrease in foreign reserves, down by 0.06% week-on-week to $38.35 billion as of March 21, 2025. Additionally, the naira weakened by 1.12% against the Chinese yuan, closing at N212.01/CNY.
