Nigeria’s currency on Monday appreciated by 0.16 percent against the dollar to N410.33k compared to N411.00k it closed on Friday at the Investors and Exporters (I&E) forex window.

The naira appreciation was as a result improved liquidity as the daily turnover increased by 13.31 percent to $69.71 million on Monday from $61.52 million recorded on Friday.

Currency traders who participated in the trading on Monday maintained bids at between N399.00k and N437.41/$, according to the data from the FMDQ.

Exchange rate remained flat at N482 at the Bureau De Change (BDC) segment of the foreign exchange market and at the parallel market.

The continued spread of the COVID-19 pandemic weakened global economic recovery and led to a decline in foreign exchange inflow into the economy in the month of January 2021.

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Provisional data from the Central Bank of Nigeria (CBN) showed that aggregate foreign exchange inflow into the economy was $5.47 billion, showing decreases of 54.2 percent and 67.5 percent below its level in the preceding month and the corresponding month of 2020, respectively.

This was attributed to the respective 66.2 percent and 45.1 percent decrease in inflow through the CBN and autonomous sources.

The CBN’s economic report for January revealed that foreign exchange outflow through the economy fell by 22.1 percent and 57.1 percent to $2.97 billion, from the levels of $3.81 billion and $6.92 billion, respectively, in the preceding month and the corresponding month of 2020.

This was driven, largely, by the decline in outflow through the CBN. Consequently, the foreign exchange transactions through the economy resulted in a net inflow of $2.50 billion, compared with $8.13 billion and $9.90 billion in the preceding month and the corresponding period of 2020, respectively.

Foreign exchange inflow through the CBN dropped significantly during the review month. Aggregate foreign exchange inflow through the CBN was $1.73 billion, indicating decreases of 66.2 percent and 66.4 percent, from the levels of $5.14 billion and $5.16 billion, in the preceding month and the corresponding month of 2020, respectively.

This was due, mainly, to the absence of interbank/institutional swaps and proceeds from government debts in the review period.

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.

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