Naira records marginal loss as liquidity decline

The naira on Monday depreciated slightly against the dollar in the official foreign (FX) market, following a decline in liquidity.

The Nigerian Foreign Exchange Market (NFEM) recorded an inflow of US$668mn last week, marking a 9 percent decline compared to US$735mn in the previous week, according to data from the research department of Coronation Merchant Bank Limited.

After trading on Monday, the naira weakened by 0.2 percent as the dollar was quoted at N1,605.62 compared to N1,602.18 quoted on Friday last week at the NFEM, data from the Central Bank of Nigeria (CBN) indicated.

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The naira appreciated to N1,600 on Monday, gaining N5 from N1,605 traded on Friday in the parallel market, also known as the black market.

According to the report, the CBN accounted for 27.73 percent of the total inflow, Foreign Portfolio Investors (FPIs) 9.22 percent, non-bank corporates 33.43 percent, exporters 24.34 percent, while other sources accounted for 5.28 percent. The gross foreign reserves increased by 0.36 percent week/week to close at US$37.93bn as of April 30, 2025. Turning to the Chinese Yuan, the Naira lost 0.40% against the Chinese Yuan (CNY), to close at N220.31CNY/N.

Last week, Naira lost 0.17 percent w/w against the US Dollar in the official spot market, closing at N1,602.18/US$1. The 1-month forward rate closed at N1,646.57/US$1. The 3-month forward contract rate closed at N1,724.19/US$1. The 6-month forward contract closed at N1,837.00/US$1 The 1-year forward rate closed at N2,056.24/US$1. At the parallel market, the value of Naira remained the same as the previous week, closing at N1,610.00/US$1 on Friday

Hope Moses-Ashike

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.