Naira resumes trading with 0.8% gain despite drop in weekly inflows

The naira on Tuesday recorded a 0.8% gain against the dollar at the official foreign exchange (FX) market despite a decline in weekly inflows.

Data from the Central Bank of Nigeria (CBN) showed that by the close of trading in the Nigerian Foreign Exchange Market (NFEM), the naira appreciated by N13.07, with the dollar quoted at N1,540.04 compared to N1,553.11 quoted on Thursday before the two-day public holiday declared by the Federal Government.

At the parallel market, also known as the black market, the local currency traded flat. It closed at N1,607 on Tuesday, reflecting a marginal loss of N2 from N1,605 traded on Thursday before the holiday break.

According to a report by Coronation Merchant Bank Limited’s research arm, the NFEM recorded an inflow of $780 million last week, lower than the $1.04 billion posted in the previous week.

The breakdown of inflows showed that exporters accounted for 18.83% the CBN contributed 19.78%, foreign portfolio investors (FPIs) made up 32.47%, non-bank corporates brought in 27.60%, while other sources accounted for 1.32%.

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Meanwhile, CBN data indicated that Nigeria’s gross foreign exchange reserves stood at $38.33 billion as of Thursday, June 5, 2025, marking a decline of $120.97 million or 0.31%.

The naira had ended the previous holiday-shortened week with its strongest performance since December 2024, appreciating by 2.13% week-on-week to close at N1,553.12 per US dollar.

The parallel market reflected similar momentum, gaining 2.13% week-on-week to close at N1,585.00 per dollar. This positive trend was largely attributed to increased inflows from foreign portfolio investors.

In the forward market, the 1-month forward rate closed at N1,606.00 per dollar, the 3-month contract closed at N1,675.50 per dollar, the 6-month forward settled at N1,776.30 per dollar, and the 1-year forward rate ended at N1,977.47 per dollar.

Despite the weekly inflow drop, market sentiment remained upbeat, supported by capital market inflows and improved investor confidence.

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.